{"id":520,"date":"2022-01-10T15:06:30","date_gmt":"2022-01-10T12:06:30","guid":{"rendered":"https:\/\/xxbet-company.com\/new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst\/"},"modified":"2022-01-10T15:06:30","modified_gmt":"2022-01-10T12:06:30","slug":"new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/nb\/new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst\/","title":{"rendered":"New York Sports Wagering Negative Catalyst for DraftKings, Says Analyst"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Innholdsfortegnelse<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/nb\/new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst\/#No_Help_for_DraftKings\" title=\"No Help for DraftKings\">No Help for DraftKings<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/nb\/new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst\/#Unfavorable_New_York_Offset\" title=\"Unfavorable New York Offset\">Unfavorable New York Offset<\/a><\/li><\/ul><\/nav><\/div>\n<p>One of this week\u2019s biggest stories in the gaming industry is that mobile sports wagering is going live in New York on Saturday, Jan. 8. But at least one analyst says that for operators, the news isn\u2019t all it\u2019s cracked up to be.<\/p>\n<figure aria-describedby=\"caption-attachment-197379\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-197379 lazyload\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-142x73.jpg\" data-src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-142x73.jpg\" alt=\"DraftKings\" width=\"1200\" height=\"616\" data-srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-142x73.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-1024x526.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-768x394.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-1536x789.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2.jpg 1854w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" data- title=\"\"><img loading=\"lazy\" class=\"wp-image-197379\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-142x73.jpg\" alt=\"DraftKings\" width=\"1200\" height=\"616\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-142x73.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-1024x526.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-768x394.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2-1536x789.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/NY2.jpg 1854w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" title=\"\"><figcaption class=\"text-description\">DraftKings is launching mobile sports betting in New York tomorrow. An analyst says it\u2019s a non-starter. (Image: Twitter)<\/figcaption><\/figure>\n<p>In a contrarian take on the headlines, Roth Capital analyst Edward Engel cautions investors about getting excited over the opening of the fourth-largest state to mobile betting.<\/p>\n<blockquote class=\"main-blockquote\">\n<p><strong>We expect operators to continue pursuing aggressive marketing\/promotional strategies in NY, and when combined with NY\u2019s 51 percent gross gaming revenue (GGR) tax rate, creates a formula for substantial 2022 EBITDA losses,\u201d<\/strong> Engel said in a note to clients.<\/p>\n<\/blockquote>\n<p>Caesars Entertainment (NASDAQ:CZR), DraftKings (NASDAQ:DKNG), FanDuel, and Rush Street Interactive (NYSE:RSI) are the fourth operators launching mobile betting apps in New York tomorrow. Bally Bet, BetMGM, PointsBet, Resorts World, and WynnBET <a href=\"https:\/\/www.casino.org\/news\/new-york-mobile-sports-betting-can-start-saturday-four-apps-to-launch-in-first-wave\/\" rel=\"nofollow noopener\" target=\"_blank\">are waiting on final approval<\/a> from the New York Gaming Commission.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"No_Help_for_DraftKings\"><\/span>No Help for DraftKings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In just four months of covering DraftKings, Engel hasn\u2019t been shy about taking the stock to task, <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-tagged-with-rare-sell-rating-by-roth-capital\/\" rel=\"nofollow noopener\" target=\"_blank\">rating it a \u201csell,\u201d<\/a> with one of the lowest price targets on Wall Street.<\/p>\n<div class=\"callout\">\n<p>His thesis is being vindicated, because the stock is down almost 48 percent over the past 90 days, though it\u2019s gotten some relief on the back of the New York news. DraftKings closed higher on Thursday and is up 4.1 percent at this writing on volume that\u2019s above the daily average. Still, the analyst says New York is a \u201cnegative catalyst\u201d for DraftKings.<\/p>\n<\/div>\n<p>\u201cWe see incremental NY losses offsetting profitability in other states in 2022, pushing DKNG\u2019s EBITDA below investor expectations,\u201d he adds.<\/p>\n<p>Engel also points out that New York\u2019s 51 percent tax rate is more than double the 21 percent national average. It is also far above the sports betting levies of 13 percent and 13.8 percent in neighboring New Jersey and Connecticut.<\/p>\n<p>Speaking of Connecticut and <a href=\"https:\/\/www.casino.org\/news\/new-jersey-sports-betting-amendment-faces-long-odds\/\" rel=\"nofollow noopener\" target=\"_blank\">New Jersey<\/a>, Engel says recent checks indicate a substantial portion of the former\u2019s sports betting activity is sourced from the southern part of the state, which is closer to New York. Likewise, New Jersey is the sports betting mecca of the US due in large part to New Yorkers crossing the border to make mobile bets.<\/p>\n<p><strong>He cautions New York operators about \u201ccannibalizing adjacent states with lower GGR taxes and higher profitability,\u201d while noting Connecticut and New Jersey can deliver EBITDA margins of 25 percent to 30 percent, with New York being in the break-even range.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Unfavorable_New_York_Offset\"><\/span>Unfavorable New York Offset<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The analyst says any favorable momentum DraftKings accrues in other states could be damaged by New York and its unfavorable tax scheme.<\/p>\n<p><strong>\u201cWhile we expect DKNG to generate positive EBITDA in more states next year, we expect this to be offset by New York. We also expect NY cannibalization to erode profitability in NJ, which is DKNG\u2019s most profitable jurisdiction,\u201d <\/strong>said Engel.<\/p>\n<p>Consensus is building that BetMGM, Caesars, and FanDuel could break even on an EBITDA basis next year. But Engel adds DraftKings is going to have difficulty stemming 2022 EBITDA losses.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\/draftkings-new-york-mobile-wont-be-helpful-to-the-stock-says-analyst\/\" target=\"_blank\">New York Sports Wagering Negative Catalyst for DraftKings, Says Analyst<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>One of this week\u2019s biggest stories in the gaming industry is that mobile sports wagering is going live in New York on Saturday, Jan. 8. But at least one analyst says that for operators, the news isn\u2019t all it\u2019s cracked up to be. DraftKings is launching mobile sports betting in New York tomorrow. An analyst <a href=\"https:\/\/xxbet-company.com\/nb\/new-york-sports-wagering-negative-catalyst-for-draftkings-says-analyst\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/520"}],"collection":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/comments?post=520"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media\/521"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media?parent=520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/categories?post=520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/tags?post=520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}