{"id":315719,"date":"2024-03-28T15:34:33","date_gmt":"2024-03-28T20:34:33","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=315719"},"modified":"2024-03-29T11:19:02","modified_gmt":"2024-03-29T16:19:02","slug":"draftkings-wont-feel-much-pain-from-college-prop-betting-ban","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/","title":{"rendered":"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts"},"content":{"rendered":"

A proposed ban on college proposition wagers would likely have minimal impact on DraftKings (NASDAQ: DKNG), according to sell-side analysts covering the company.<\/p>\n

\"DraftKings\"
Employees at DraftKings headquarters. Analysts say the threat of a ban on college prop bets will have minimal impact on the gaming company. (Image: CNBC<\/em>)<\/figcaption><\/figure>\n

Several analysts chimed in on the matter on Thursday. That was a day after shares of the online sportsbook operator and rival Flutter Entertainment (NYSE: FLUT), the parent company of FanDuel, slumped on news that NCAA President Charlie Baker<\/a> said the organization wants to halt prop bets on college athletic events to bolster integrity.<\/p>\n

\n

Analysts acknowledged that while investors overreacted to Wednesday’s news, as highlighted by the slumps endured by DraftKings and Flutter, the overall effect of lost college prop bets is likely minimal to those operators and their rivals. In a note to clients on Thursday, Bank of America analyst Shaun Kelley said alterations in the college prop betting landscape are \u201cde minimus\u201d for DraftKings.<\/p>\n<\/div>\n

Rather, he views the specter of higher taxes<\/a> on online sports betting as potentially more concerning to the young industry.<\/p>\n

Other Analysts Defend DraftKings<\/h2>\n

With New Jersey policymakers floating a plan to potentially raise taxes on iGaming and sports betting, and Sen. Richard Blumenthal (D-CT) saying more federal oversight of how operators target \u201chigh-value\u201d bettors is needed, this week\u2019s news flow for DraftKings, Flutter, and the industry at large has been negative.<\/p>\n

However, Wall Street is still in DraftKings\u2019 corner<\/a>. JPMorgan told clients that Wednesday\u2019s sell-off was overdone, while reiterating an \u201coverweight\u201d rating and $55 price target on the stock. That implies upside of 21% from Thursday’s close.<\/p>\n

\n

MoffettNathanson has a similar view. The research firm acknowledged there is some headline risk threatening online gaming stocks. But it reiterated a \u201cbuy\u201d rating on DraftKings while boosting its price forecast on the stock to $55 from $52.<\/p>\n<\/div>\n

Of the 32 analysts with ratings on DraftKings, 24 grade the stock the equivalents of \u201cstrong buy\u201d or \u201cbuy.\u201d<\/p>\n

A Different View<\/h2>\n

JMP Securities analyst Jordan Bender had a somewhat different take on the college prop betting ban. In a note to clients on Thursday, he pointed out that in 2023, college sports drove $1.6 billion of revenue for regulated U.S. online sportsbook operators, while accounting for about 15% of the overall handle.<\/p>\n

He added that with prop wagers increasing in popularity, $200 million in revenue could be at risk, based on 2023 figures, if a ban is enforced.<\/p>\n

At the end of the day, bettors will find a way to wager on events and players, and we believe the effort to ban individual player betting will likely only push players back offshore, while we estimate over 50% of wagers today are in the United States,\u201d<\/strong> wrote Bender.<\/p><\/blockquote>\n

He did note that the mix of player prop bets on college games is lower than what\u2019s found on professional sports.<\/p>\n","protected":false},"excerpt":{"rendered":"

A proposed ban on college proposition wagers would likely have minimal impact on DraftKings (NASDAQ: DKNG), according to sell-side analysts covering the company. Several analysts chimed in on the matter on Thursday. That was a day after shares of the online sportsbook operator and rival Flutter Entertainment (NYSE: FLUT), the parent company of FanDuel, slumped […]<\/p>\n","protected":false},"author":46,"featured_media":260470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[82967,10,13592,1074],"tags":[85454,81903,81895,80968],"acf":[],"yoast_head":"\nDraftKings Won't Feel Much Pain From College Prop Betting Ban<\/title>\n<meta name=\"description\" content=\"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Won't Feel Much Pain From College Prop Betting Ban\" \/>\n<meta property=\"og:description\" content=\"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-28T20:34:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-29T16:19:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/\",\"name\":\"DraftKings Won't Feel Much Pain From College Prop Betting Ban\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg\",\"datePublished\":\"2024-03-28T20:34:33+00:00\",\"dateModified\":\"2024-03-29T16:19:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Employees at DraftKings headquarters. Some investors aren't happy about the company's plan to tax winning sports bets in four states. (Image: CNBC)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"DraftKings Won't Feel Much Pain From College Prop Betting Ban","description":"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/","og_locale":"en_US","og_type":"article","og_title":"DraftKings Won't Feel Much Pain From College Prop Betting Ban","og_description":"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.","og_url":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2024-03-28T20:34:33+00:00","article_modified_time":"2024-03-29T16:19:02+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/","url":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/","name":"DraftKings Won't Feel Much Pain From College Prop Betting Ban","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg","datePublished":"2024-03-28T20:34:33+00:00","dateModified":"2024-03-29T16:19:02+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG2-scaled.jpg","width":2560,"height":1707,"caption":"Employees at DraftKings headquarters. Some investors aren't happy about the company's plan to tax winning sports bets in four states. (Image: CNBC)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/draftkings-wont-feel-much-pain-from-college-prop-betting-ban\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"DraftKings Would Feel Little Impact from College Prop Betting Ban, Say Analysts"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/315719"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=315719"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/315719\/revisions"}],"predecessor-version":[{"id":315853,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/315719\/revisions\/315853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/260470"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=315719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=315719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=315719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}