The coronavirus pandemic caused major sports leagues to suspend their seasons in March when stay-at-home mandates started in the U.S. The outage was a significant blow to DraftKings (NASDAQ: DKNG), which offers its users contests that award winners based on the outcome of sporting events. With no significant sports, the company can only offer a limited number of games.
Now that the National Basketball Association (NBA), Major League Baseball (MLB), and the National Hockey League (NHL) have restarted play, DraftKings is poised to benefit. Still, the possibility of one or more of the leagues shutting down again because of a coronavirus outbreak remains ever-present.
DraftKings is expecting to report second-quarter results on Friday. What can investors expect?