Dr. Justin L Davis

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 events indicating the likelihood of the eventual decision by SCOTUS, instead only responding once its formal ruling was released on the final decision date. These findings raise questions about the efficiency of markets reacting to available information and the potential for investors to profit in similar future situations