DraftKings Takes a Hit from Illinois Tax Hikes

DraftKings Inc, the daily fantasy sports contest and sports betting giant, is reeling from a devastating tax hike in Illinois. The company’s CEO has come out swinging, labeling the tax increase as a “crazy” move that’s left the industry reeling. But instead of folding under the pressure, DraftKings is fighting back - with a fee that’s designed to offset the crippling tax burden.

The move is a clear sign that the company is not going down without a fight. But will it be enough to stem the tide of losses? Analysts remain optimistic, with Jefferies maintaining a “Buy” rating and Bernstein reiterating an “Outperform” rating. But the numbers don’t lie - DraftKings’ stock has seen some serious volatility in recent weeks.

Here are the key takeaways:

• Illinois tax hike: 15% increase in tax rate for online gaming operators
• DraftKings’ response: imposing a fee to offset tax burden
• Analysts’ verdict: Jefferies “Buy” rating, Bernstein “Outperform” rating
• Stock performance: volatile, but overall market sentiment remains positive

The question on everyone’s mind is: will DraftKings be able to weather the storm? The company’s CEO has made it clear that they’re not going to take this lying down. But the tax hike is a serious blow - and one that could have far-reaching consequences for the industry as a whole.

Only time will tell if DraftKings can come out on top. But one thing’s for sure: this is a battle that’s far from over.