“ It ’ s also a subsidy to bookies and the illegal market : legal operators have just started to make serious inroads into Illinois ’ robust illegal sports betting market ”
Sports Betting Alliance
“ Players are probably going to see fewer promotions and that is not good for the consumer . It could impact the lines and that is another negative for the consumer . And it could force some operators out , which means less choice , which is also bad for the consumer ”
Shawn Fluharty , Play ’ n GO an immediate impact on DraftKings and FanDuel stock . The Illinois legislature was scheduled to adjourn on 24 May , the Friday before the Memorial Day weekend . Instead , it extended the session and worked through the Monday holiday and part of the following week .
The Friday before Memorial Day weekend , Flutter – FanDuel ’ s parent company – stock was trading at $ 204.11 . After the weekend and the vote , it fell to $ 188.33 . As of 20 June , Flutter was trading at $ 190.40 . Likewise , DraftKings stock was trading at $ 40.75 ahead of the Illinois vote and $ 36.61 at its conclusion . It had rebounded to $ 43 by 20 June .
ENCOURAGING THE BLACK MARKET
A bigger concern , as pointed out by the SBA , is whether or not the decision to raise taxes will ultimately create an opening for the black market . Operators have long contended that restricting betting markets or limiting choices sends bettors looking for better deals .
To that end , raising taxes to the point where operators cut back on promotions , increase odds , or do anything that could cause a consumer to seek another option is perceived as negative by the industry .
“ Increasing tax rates at a time when market entrants are directly competing with illegal offshore sites is merely a prescription to promote and preserve that still-present illegal market ,” American Gaming Association SVP for government relations Chris Cylke told iGB .
“ As regulations evolve and policymakers consider changes , it is crucial they continue to design and promote regulated markets that emphasise continued innovation and competition that build on the industry ’ s momentum in migrating bettors out of the illegal market and into the legal market , not jeopardise that progress .”
iGB L ! VE 2024 • ISSUE 136 • 85