DraftKings Inc faced a nearly 10% drop in premarket due to the impact of the Illinois Sports Betting Bill. This legislation establishes the second highest tax on sports betting companies in the US state.
For DraftKings, this translates to 20% of its retail adjusted gross revenue, approximately $7.0 million, and 40% of its digital adjusted gross revenue, approximately $350 million.
Additionally, Flutter Entertainment, FanDuel‘s parent company, also suffered a drop of around 5.0% in response to this legislation.
Despite DraftKings‘ impressive financial results in the first quarter, with promising sales projections for the future, its shares are down nearly 25% from their year-to-date peak.
Furthermore, rumors about the possible acquisition of Simplebet by DraftKings also kept the company’s shares in the spotlight. Simplebet is a New York-based B2B platform specializing in micro-betting markets for various sports leagues.
DraftKings’ $210 million acquisition offer seeks to further expand its gaming offerings. It is important to note that DraftKings already has a 15% stake in Simplebet, with a multi-year agreement to expand its gaming offerings through Simplebet products.
In the market, DraftKings shares receive a consensus rating of “Overweight” from Wall Street analysts.
About DraftKings
DraftKings is a sports technology and digital entertainment company founded in 2012. It offers a variety of products and services, including sports betting platforms, casino games, sports content and more.
As a result, the company is known for its innovation in the sports betting industry, offering a market-leading user experience and strategic partnerships with professional sports leagues.
Headquartered in Boston, Massachusetts, the company continues to expand its presence globally. Thus, offering entertainment and betting opportunities to sports fans across the world.
