One of the biggest stories in sports this year looks like it’s coming to an end. The Shohei Ohtani betting scandal is ending with his former interpreter pleading guilty to fraud counts without much fanfare. Now that betting is legal in more than half the country, many of the sportsbook companies are publicly traded. This allows us to not only gamble on the sportsbook platform but also bet on the sportsbook company through the stock market.
DraftKings and ESPN BET’s parent company, PENN Entertainment, recently revealed their 2024 Q1 earnings, and each had a different story. DraftKings stock soared, and PENN stock didn’t. ESPN BET, though, did manage to ink a partnership to be the official PGA Championship betting partner for the next three years. Meanwhile, one sports bettor in Arizona is close to a major payout if the Oklahoma City Thunder win the NBA title.
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Sports Betting News: Mizuhara To Plead Guilty In Ohtani Case and More
Shohei Ohtani’s former interpreter, Ippei Mizuhara, has agreed to plead guilty to bank and tax fraud in a sports betting case. Prosecutors allege he stole nearly $17 million from Ohtani to pay off gambling debts.
The U.S. Justice Department announced that Mizuhara will plead guilty to one count of bank fraud and one count of subscribing to a false tax return. The bank fraud charge carries a maximum of 30 years in federal prison. The false tax return charge carries a sentence of up to three years in federal prison. He is also going to be required to pay Ohtani restitution, which could total nearly $17 million, as well as more than $1 million, to the IRS.
Prosecutors said Mizuhara will enter his guilty plea in the coming weeks and will be arraigned on May 14.
Mizuhara’s action rocked the sports world just as the MLB season was getting underway. The news cast a cloud over Ohtani, who said Mizuhara stole from him, and he had no idea. The Ohtani betting controversy hasn’t seemed to slow down or hinder the All-Star’s production with his new team, the Dodgers. Through Wednesday’s action, Ohtani leads the NL with a .355 batting average and 11 home runs. He has also driven in 27 runs.
Sportsbook Earnings Season: DraftKings Stock Soars; PENN Stock Whimpers
It’s sportsbook earnings season again for the publicly traded companies. And some of the sportsbooks stocks are cashing in after a strong Super Bowl in terms of betting.
DraftKings (NASDAQ:DKNG) stock beat analyst expectations after a strong first quarter. Revenue was up 52.7 percent to $1.17 billion year on year. Its full-year revenue guidance of $4.9 billion also came in almost two percent above analysts’ estimates.
“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.
PENN Entertainment (NASDAQ:PENN) wasn’t as fortunate in the first quarter. Although Penn reported overall revenue of $1.61 billion, which was in line with expectations, revenue from its interactive business, which now includes ESPN Bet, came in at $208 million. That was $29 million less than expected estimates.
“ESPN Bet continued to attract new users this quarter while maintaining a disciplined approach to promotions and marketing expenses; however, our financial results were impacted by lower-than-expected hold and spend per user,” said Jay Snowden, CEO and President, in a statement.
Flutter (NYSE:FLUT), the parent company of the popular sportsbook FanDuel, will report its earnings on May 14. As the two battle it out, Flutter will attempt to rival DraftKings’ stock announcement.
Sportsbook stocks are often volatile. But if you have the stomach to sweat it out on the Miami Marlins and other crappy teams on a $100 bet, maybe you should consider investing in the sportsbooks that are trying to take your money.
ESPN BET Named Official Betting Sponsor of PGA Championship
This week, the PGA of America and PENN Entertainment announced a multiyear sports betting partnership, naming ESPN BET the “Official Sports Betting Sponsor” of the PGA Championship through 2026. ESPN BET is operated by PENN Entertainment.
This agreement marks a milestone for the PGA Championship. It becomes the first men’s golf major to establish an official sports betting sponsor.
“We are incredibly proud to partner with PENN Entertainment and immerse ESPN BET into the spectator experience throughout the PGA Championship,” said Jeff Price, PGA of America’s Chief Commercial Officer. “The added onsite presence of ESPN BET, as well as broadcast and content offerings, will provide spectators with exciting new ways to enjoy and engage with all of the action during the PGA Championship.”
This year’s PGA Championship will be held at Valhalla Golf Club in Louisville, Kentucky, from May 16-19. The 2025 PGA Championship will be contested at Quail Hollow Club in Charlotte, North Carolina. Aronimink Golf Club in Newtown Square, Pennsylvania, will host the 2026 PGA Championship. All three events will be broadcast on the ESPN family of networks.
In addition to on-site activations, ESPN BET will be integrated into broadcasts, with odds and insights provided to enhance storytelling. The sponsorship also includes opportunities for collaborative content across PGA of America digital media platforms. ESPN BET will also offer specially curated tournament betting offers before and during all four rounds.
Long-shot Parlay May Cash in $1.7 Million
We’ve all done it. Take a profit boost from a sportsbook and throw together a long-shot parlay in hopes of retiring young.
Well, Wayne Shelton is close to hitting his $100, three-team parlay. The Phoenix native only needs the Oklahoma City Thunder to win the NBA title for a cool $1.7 million. Shelton placed future bets with DraftKings with a 50% boost in May 2023.
He already won two legs. The Texas Rangers won the World Series, and the Kansas City Chiefs won the Super Bowl. He now needs OKC to win the NBA title.
Read more about Wayne’s long-shot bet in this article by Doug Greenberg on ESPN.com.
