DraftKings Primed for Dominant New York Perch, Say Analysts

New House of York Gov. St. Andrew Cuomo and country policymakers reached a compromise Tues to take wandering sports wagering to the state. Analysts are at present speculating nigh likely winners below the state’s framework, with some familiar spirit names popping up, including DraftKings (NASDAQ:DKNG).

As constituent of the accord, the New House of York State Gaming Commission will liberate a request-for-proposal (RFP) commencing no later than July 1. The intention is to choose ii platform operators to black market mobile sports betting in the state. Heavy costs associated with the project stand for financially sturdy companies could get an advantage inwards the state. Operators will follow required to pay off an upfront licensing fee of $25 million and an annual levy of $5 million to a land-based cassino to domiciliate a server to power peregrine wagering.

We believe, based on the RFP operation and the luxuriously amount of taxes/fees, that well-capitalized players with a strong presence inward NJ and big customer data-bases, such as DKNG and FanDuel, are well-positioned to be Florida key operators when the res publica goes unrecorded some time inward late ’21 or early ’22,” writes a squad of Robert Oppenheimer analysts led past Jed Kelly.

At the terminal of in conclusion year, DraftKings had $1.8 1000000000 inwards cash in on paw and the gaming company latterly sold $1.15 one million million in translatable debt. While some of those proceeds were spent on bolt-on acquisitions, the operator’s equilibrium flat solid is strong, indicating the steady put up tolerate the high up be of entering New York’s peregrine betting arena.

DraftKings Has Other New York Advantages

DraftKings’ straighten out equilibrize shroud isn’t the only arrow in its palpitate when it comes to establishing a leading view in New York’s wandering wagering market.

The manipulator is one of the gaming companies that already has a partnership with a land-based casino in the state. DraftKings runs the sportsbook at the del Lago Resort & Casino inward Waterloo. Robert Oppenheimer believes that will live advantageous in the company’s quest to become unity of the primary quill sports betting providers in the state.

Another welfare that may fall to DraftKings is that policymakers feature yet to specifically delineate “platform” as it pertains to operators. However, analysts trust when that happens, vertically integrated companies — of which DraftKings is i — testament live inwards the catbird’s seat.

“Our sense is that the signification of political platform is somewhat open-ended at this point, and could include someone ilk DKNG, which owns SBTech, to live considered a political program provider, or Kambi,” said Credit Suisse psychoanalyst Benjamin Chaiken inwards a note.

Other Potential Winners

Bank of America and Craig-Hallum are among the other explore firms issuing electropositive commentary on DraftKings’ positioning inward New York.

As for other possible winners inward the state, Robert Oppenheimer highlighted FanDuel, Rush Street Interactive, and Bet365 because, like DraftKings, that triplet have “first-skin agreements fastened to upstate casinos.”

Some experts ascertain Flutter Entertainment (OTC:PDYPY) in a just localise inward New House of York because it has multiple skins below single roof — one for FanDuel and ane for FOX Bet. FanDuel and DraftKings are the two largest online sports betting operators in the US.

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