Shares of DraftKings Inc (NASDAQ:DKNG) are trading higher by 2.31% to $37.04 Tuesday afternoon following news that its primary competitor, FanDuel, will impose a new fee on its users in Illinois.
What To Know: The move by FanDuel, a subsidiary of Flutter Entertainment PLC (NYSE:FLUT), is a direct response to a new betting transaction fee levied by the state legislature.
FanDuel announced it will add a 50 cent charge to every sports wager placed on its platform in Illinois, starting September 1. This decision follows the state’s implementation of a transaction fee on all licensed operators, which comes on the heels of a significant betting tax rate increase in 2024.
Read Also: Webull Stock Is Trading Higher Tuesday: What Investors Are Watching
Investors reacted positively to the development for DraftKings, with its stock seeing an uptick in early trading. The prevailing market sentiment suggests that FanDuel’s new fee could drive customers to seek alternatives, directly benefiting competitors who do not pass on such costs to their user base. DraftKings has not announced any similar transaction fee for its Illinois customers.
This creates a potential competitive advantage for DraftKings in the lucrative Illinois market. The strategic divergence on pricing could lead to a shift in market share, positioning DraftKings to potentially capture a larger segment of the state’s sports betting revenue. Flutter Entertainment’s stock, in contrast, traded flat following their announcement.
Read Also: Windtree Stock Is Rising Tuesday: What’s Going On?
How To Buy DKNG Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in DraftKings’ case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, DKNG has a 52-week high of $53.61 and a 52-week low of $28.69.
Image: Shutterstock
