The sports activities trade is in a state of shock following the arrest of greater than 30 individuals concerned with the Nationwide Basketball Affiliation (NBA).
The investigation, described as “mind-boggling” by the FBI Director Kash Patel, has spanned 11 states and entails thousands and thousands of {dollars} allegedly made via unlawful betting and recreation rigging through the 2023–2024 season.
In accordance with the prosecutors, the scheme concerned insider data and arranged crime exercise, damaging the repute of the league on a number of fronts.
Given the scope of the issue, the query for buyers with publicity to the sports activities trade is easy: What shares to observe after the NBA’s betting scandal?
Warner Bros (WBD)
One of many NBA’s major broadcasting companions, Warner Bros (NASDAQ: WBD) seems fully unshaken by the federal probe. Quite the opposite, it has been posting nothing however positive aspects this 12 months, its inventory having practically doubled since January and buying and selling at $21.25 on the time of writing, up one other 3.5% on the every day chart.
Nevertheless, the corporate’s future trajectory now lies in a stability, as a number of candidates are reportedly seeking to purchase a portion or all the agency. As an example, Warner Bros has already rejected three Paramount Skydance takeover provides, the final of which got here in at just below $24 per share.
The administration instructed CNBC on Tuesday, October 21, that it will proceed reviewing all coming bids, whereas on the similar time transferring forward with the present plans to separate into two separate entities, particularly a streaming and studios enterprise platform and a worldwide networks enterprise.
This strategy, stated CEO David Zaslav, will permit the media big “to determine the very best path ahead” and “unlock the complete worth of our property.” Regardless of the future may convey, WBD is thus undoubtedly value maintaining a tally of.
Madison Sq. Backyard Sports activities (MSGS)
Madison Sq. Backyard Sports activities (NYSE: MSGS) is a number one sports activities holding firm managing the New York Knicks. Whereas not as robust as Warner Bros, MSGS has additionally been on an upward pattern, the inventory climbing practically 18% over the previous six months and buying and selling at $226.16 at press time, up 0.29% on the day and 0.24% in pre-market.
MSGS is a very fascinating case as its Q3 earnings report is quick approaching, scheduled for November 7. Whereas the Knicks don’t look like concerned within the betting controversy instantly, a perceived decline in confidence towards the league at massive may theoretically stress the inventory, as may any new, probably detrimental discoveries on the investigators’ half.
Nevertheless, additionally it is value noting that the crew’s efficiency this season has not likely affected the supervisor’s inventory that a lot. Specifically, the Knicks noticed their first Jap Convention Finals look in 25 years, however even with the 2026 title now in play, Madison Sq. Backyard Sports activities shares have solely climbed 3.4% over the previous 12 months.
What’s extra, the working margins stay slim. The corporate reported a mixed $22.6 million loss on the finish of the earlier fiscal 12 months, regardless of playoff income. Additionally, the 2 groups are value round $13.5 billion in complete, whereas MSGS trades at solely $6.6 billion in enterprise worth.
That’s, MSGS provides publicity to the NBA at a deep low cost, and the share costs may go up if the hole between private and non-private valuations manages to shut, particularly if the goals of a brand new title are realized, however there are a selection of things at play now, making it troublesome to foretell how the scenario may develop. Nonetheless, the inventory is value watching within the weeks to come back.
DraftKings (DKNG)
DraftKings (NASDAQ: DKNG), a well-liked Boston-based betting firm protecting the NBA and different main American sports activities leagues, has been struggling in latest weeks, its inventory plummeting practically 20% on the month-to-month chart and buying and selling at $34.70 at publication time.
With the integrity of sports activities betting now severely impacted, DraftKings finds itself in an much more precarious place, its shares being susceptible to additional losses. Nonetheless, some latest strikes are drawing renewed investor consideration, most notably the corporate’s first main foray into prediction markets via a strategic partnership with Polymarket.
Congrats to @DraftKings on their acquisition of @RailbirdHQ.
We’re proud for Polymarket Clearing to be their designated clearinghouse as they enter the prediction market area.
— Shayne Coplan 🦅 (@shayne_coplan) October 22, 2025
Extra exactly, DraftKings plans to launch its new DraftKings Predictions cell app within the coming months, protecting markets throughout finance, tradition, and leisure. Polymarket itself is presently in early talks to boost capital at a $12–15 billion valuation, a considerable improve from the June 2025 valuation of $1 billion. Expectedly, present backers and potential new buyers alike are paying shut consideration to the betting platform.
Featured picture through Shutterstock
