A surge in American sports betting lifted most sports betting stocks higher in 2023, as the Sportico Sports Stock Index rebounded after a disastrous 2022 to finish up 10%, its best year since 2020.
The Sportico index, consisting of 40 companies highly reliant on sports for their growth, closed out 2023 at 1,153, up 100 points. While that lagged the 26% rise in the S&P 500, sports’ 10% gain provided a welcome reprieve for the industry, which saw sports share values tumble 33% in 2022 on inflation fears and worries of excessive sports gambling marketing costs and lack of profits.
DraftKings emerged as a bellwether for the U.S. sports betting industry, with its shares more than triple to close out 2023 at $35.25 after losing more than half their value in 2022.
