You bought more DraftKings. DraftKings is up 14% in a month. It's great when you can have these midcap, small cap names ride the coattails, but I mean your true investment are in the large cap.It's fun to get into some of these smaller names. We bought DraftKings. To your point, it's up 14%.I like the momentum, but this is like a dualopoly. They have 80% of the market share in combined with um the other name DraftKing and FanDuel. Thank you.Yeah, FanDuel. So 80%. And you've only got 25 states so far for Dra ...

Gambling Landscape & Regulatory Scrutiny - Gambling interest is expected to continue growing [1] - The gambling landscape is rapidly evolving with new wagering methods beyond traditional sports books and slot machines [2] - Sweepstakes gaming, where players use virtual coins but can buy in with real money, is facing increasing regulatory pressure [2] - More than a dozen states have issued cease and desist letters against sweepstakes, and several states are considering or have already banned them [3] - California Attorney General has deemed daily fantasy sports illegal gambling, though this is disputed [4][5] Prediction Markets & Potential Conflicts - Prediction markets, involving buying and selling contracts on event outcomes, are emerging, with companies like Crypto[6]com, Robin Hood, and Koshi pushing for sports trades on these platforms [5][6] - These prediction markets are regulated by the Commodity Futures Trading Commission (CFTC), and proponents argue they are not gambling but predictions, thus falling under federal jurisdiction [6] - 34 state attorneys general have joined an amicus brief to prevent Koshi from operating in New Jersey, indicating strong opposition [7] - The American Gaming Association, NBA, and MLB express concerns that prediction markets could undermine sports integrity and consumer protection [8] Tax Implications & Offshore Gambling - A proposed provision in the OBB would allow gamblers to deduct only 90% of their winnings, potentially leading to owing taxes even without a profit [9] - This tax situation could incentivize gamblers to use offshore platforms, potentially benefiting companies like Koshi, where losses are treated as investment losses [10]

Arbitrum won Robinhood, but the race is far from over.Fidelity. Visa. Mastercard. FanDuel. DraftKings. Stripe. eToro. Revolut. They will all come onchain next. ...

Core Insights - FanDuel is implementing a 50-cent surcharge on all wagers in Illinois to offset the impact of new state taxes, which are particularly burdensome for leading sportsbooks [1][3] - DraftKings is expected to follow FanDuel's lead in response to the new tax structure [2] - The new tax structure includes a progressive tax rate that can reach up to 40% for the most successful sportsbooks, significantly higher than the previous 15% rate [3][4] Company Actions - FanDuel's new surcharge is projected to generate an additional $86 million in revenue for 2026, representing about 2% of its EBITDA [3] - DraftKings anticipates a revenue increase of $79 million from the surcharge, which would account for approximately 5.4% of its projected EBITDA for the same year [3] - Flutter has stated that if the state reverses the tax decision, FanDuel will eliminate the surcharge immediately [2] Industry Context - The Illinois tax is part of a broader trend, with other states like New Jersey, Maryland, Massachusetts, Michigan, and Pennsylvania considering similar tax increases [6] - Flutter's CEO expressed concerns that the new tax structure disproportionately affects lower-wagering customers and could drive gamblers to unregulated operators [5][6] - The CEO emphasized the need for an optimal gaming tax rate to enhance customer experience, market growth, and state revenue over time [5][7]

Sports betting only became legal in the United States in 2018 after the U.S. Supreme Court struck down a 1992 federal ban and ruled that states could individually determine what forms of gambling were legal within their boundaries. This opened the floodgates for various state legislatures to decide whether to allow sports betting. Currently, 40 states and the District of Columbia authorize the practice, and 34 permit online sports betting, according to the American Gaming Association. This has tax impl ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenue reached $318 million, a year-over-year increase of 6.9%, and adjusted EBITDA was $47 million, up 6.2% year-over-year [23] - For the full year, total revenue was $1.2 billion, reflecting a 5.2% increase, while adjusted EBITDA increased by 4.2% to $189 million [7][23] - As of December 31, the company had 26,346 terminals across 4,117 locations, representing year-over-year increases of 5% and 3.9%, respectively [23] Business Line Data and Key Metrics Changes - In Illinois, revenue per location was $868 per day, a 3.5% increase year-over-year, while Montana saw $614 per day, up 4.6% year-over-year [23] - Nebraska reported $253 per day, a 5.9% increase year-over-year, while Nevada experienced a decrease of 6.7% to $786 per day [23] Market Data and Key Metrics Changes - Illinois, the largest market, posted market-wide GGR growth of 4% year-over-year, outperforming Illinois casinos which were down 3% year-over-year [8] - The company strategically closed 54 underperforming locations in 2024 to right-size operations in response to a 1% increase in state gaming tax [10] Company Strategy and Development Direction - The company is focused on organic growth in Illinois, Nebraska, and Georgia, while also pursuing M&A opportunities in the fragmented local gaming market [16][17] - The Fairmont acquisition includes a master sports betting license and aims to develop a locally focused casino, with phase one expected to open in Q2 2025 [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within the local gaming market, emphasizing the importance of maintaining a healthy balance sheet and low leverage [30] - The company is optimistic about the potential rollout of ticket in, ticket out (TITO) technology in 2025, which is expected to enhance the gaming experience [13] Other Important Information - Capital expenditures for 2024 were $67 million, with forecasts of $75 million to $80 million for 2025 [25] - The board authorized replenishing the share repurchase program back to $200 million, indicating a commitment to returning capital to shareholders [26][27] Q&A Session Summary Question: Contributions from Louisiana and Fairmont to the model - Management indicated that Louisiana is expected to contribute $6 million of EBITDA for the full year 2025, with Fairmont projected to generate $25 million of EBITDA once fully operational [34] Question: Trends in Illinois and other markets - Management noted favorable weather conditions in January contributed to strong performance, while February saw less favorable conditions [38] Question: Pruning of Illinois units and future growth - Management clarified that pruning is an ongoing process and that growth will manifest as assets are redeployed into better-performing locations [44] Question: Expansion in e-pull tabs and legislative developments - Management acknowledged the potential of the e-pull tab market but emphasized the need for partnerships to participate effectively [49] Question: Growth opportunities in Louisiana - Management highlighted the fragmented nature of the Louisiana market, particularly in truck stops and bars, as a significant growth opportunity [61]