Social and Behavioral Sciences Commons^™

Analyzing The Efficiency Of Response To News Regarding Legalization Of Sports Wagering, Kevin Krieger, Justin L. Davis

International Conference on Gambling & Risk Taking

A landmark decision (Murphy v. NCAA) by the Supreme Court of the United States (SCOTUS) in 2018 ruled the federal government could not prohibit states from allowing sports wagering. While the implications of this decision are far reaching at both an industry and societal level, our study assesses the market response to information available throughout the various phases leading up to this decision by SCOTUS. The timeline of events preceding the SCOTUS decision is tracked, and stock performances of relevant, publicly traded firms are analyzed across three inflection points. Findings suggest the market failed to adequately acknowledge key …