Although parts of Rush Street Interactive (RSI) are down 34.55% since the start of the year, it could benefit the company if Illinois decides to legalize iGaming.
Oppenheimer Analyst Jed Kelly noted that recognition of the RSI brand in Illinois could benefit a bit like BetMGM Online Casino a in Michigan.
Online Casino in Illinois?
At the time of writing, $RSI shares were trading at $10.91 per share.
Illinois is currently the only state in the United States with an active iGaming bill. The law project, HB 3142/ SB 2064is also known as online gambling law. It encompasses both online casino games and online poker. However, the influence held by the physical establishments made the passage very delicate. Illinois Legislative Session Extends Until April 8.
Indiana has decided not to move forward with online casino legislation earlier this year. Likewise, Iowa pushed back its bill to 2023.
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What Wall Street analysts say
Following Super Bowl LVIKelly cut his RSI forecast by $25 to $14. The Wall Street analyst also lowered its price outlook for DraftKings at $35 from $70.
What could improve the prospects for DraftKings 2022 is availability. DraftKings Sportsbook is available in 17 states and, along with eight other carriers, has been approved in New York.
From January 8 to 30, New York State recorded $1.6 billion betting value, the most all-time for a single month of any US state. New Jersey previously held the record, which saw $1.3 billion in wagers in October 2021.
In a note to customers, Steven Wieczynski, Stifel analyst had this to say:
“DraftKings is well funded and enjoys a cost of capital advantage (although it has contracted more recently), both of which are being leveraged to compete via aggressive marketing spend. Early market share results suggest the strategy is working, although the chances of success of a planned rationalization of marketing spend and a shift towards profitability remains a key debate today.
At the time of writing, $DKNG shares were trading at $23.18 per share. DraftKings reports fourth quarter results on February 18.