Analysts at Mizuho Securities initiated coverage of DraftKings stock with a "buy" rating and a $58 price target, citing the company's leading position in the North American online sports betting market and improving earnings. While the stock trades at an expensive valuation, the company's ability to control operating expenses and leverage in-house developed games and content could lead to higher profits. Patient investors may see new highs for the stock, but potential investors should consider other stock options identified by The Motley Fool Stock Advisor team.
Flutter Entertainment, owner of FanDuel, is set to list in New York as it capitalizes on the US online sports betting boom, with sales in the US surging from £191m in 2018 to £3.6bn last year. The company sees a long runway for future growth but acknowledges concerns around problem gambling influencing future regulation. Despite bullish outlooks from analysts and the industry's pushback against potential regulations, Flutter remains cautious about the impact of social responsibility concerns on its reputation and operations.
FanDuel Vermont Sportsbook is offering new users a $100 bonus bet on launch day, January 11, if they sign up using the FanDuel Vermont Promo Code. Additionally, users who place a wager of at least $5 using their deposited funds will receive an extra $200 in bonus bets. Vermont law allows for up to six online sportsbooks, and FanDuel has been confirmed as one of them. Once registered, users can also take advantage of ongoing promotions such as Same Game Parlays, odds boosts, and referral bonuses.
The NHL's first player suspension for online sports betting raises questions about the potential risks of legalized online gambling for young athletes. While the league and its teams benefit financially from gambling partnerships, the incident involving 22-year-old Shane Pinto highlights the vulnerability of young people to the allure of online sports betting. The Alcohol and Gaming Commission of Ontario has already taken steps to restrict the use of athletes and celebrities in gambling advertising to protect minors. The NHLPA is expected to further educate its members on the risks associated with gambling. The incident prompts a broader discussion about the need to better contain the influence of online sports gambling in the world of professional sports.
The Supreme Court has rejected an emergency bid to block a multibillion-dollar agreement between Florida and the Seminole Tribe, allowing online sports betting to potentially become available in the state. The agreement, championed by Governor Ron DeSantis, is expected to bring in $2.5 billion in revenue over the next five years and $6 billion through 2030. While concerns under state law were not addressed in the current application, Justice Brett Kavanaugh raised questions about potential conflicts. The court's decision may encourage other states and tribes to pursue similar deals.
Analysts believe that DraftKings stock is poised for further growth due to its appealing business model and strong competitive position in the online sports betting industry.
Wynn Resorts will be shutting down its WynnBET online sports betting and online gaming platforms in eight out of the twelve states where it operates, citing high costs and intense competition. The company's operations in Nevada and Massachusetts will not be affected. Wynn Resorts plans to work with regulators and customers to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. The company is also reviewing its operations in New York and Michigan. WynnBET has struggled to gain significant market share, with four dominant operators controlling the majority of the sports betting business. The decision reflects a focus on capital deployment in states where Wynn Resorts has a physical presence.
An appellate court ruling has overturned a lower court ruling that had halted the $2.5 billion pact between the state of Florida and the Seminole Tribe, potentially paving the way for online sports betting to return in the state. The ruling stated that the Indian Gaming Regulatory Act does not prohibit a gaming compact from discussing activities outside Indian lands, including online gambling. The Seminole Tribe is expected to resume sports betting within the next month, with the aim of expanding nationally. However, opponents argue that online gambling is still subject to the state constitution, which requires voter approval for any expansion of gambling.
