DraftKings Stocks Jump Higher as Illinois Gets Rid of Its In-Person Registration Requirement

DraftKings Stocks Jump Higher as Illinois Gets Rid of Its In-Person Registration Requirement

The stocks of fantasy sports and sports betting operator DraftKings soared by 9% in late trading as the state of Illinois did away with its in-person registration requirement. The withdrawal of the restriction will be temporary but will help online sports wagering in the state.

Governor earlier declined to review an order

The governor of Illinois refused to renew an order in July that restricted in-person registration for sports wagering. After that, DraftKings experienced a sell-off and several sports betting stocks suffered. Investors were then concerned whether the clients will potentially have to drive multiple hours to their nearest casino or racetrack just to be able to create an account for mobile gaming. However, last Friday, governor Pritzker said that the mandate is temporarily being lifted off, giving hope to both players and investors.

DraftKings Stocks Jump Higher as Illinois Gets Rid of Its In-Person Registration Requirement

DraftKings investors rejoice

Jed Kelly, Oppenheimer analyst wrote in a note to clients,

“We view this as an incremental positive for DKNG given that the in-person registration at Casino Queen in East St. Louis (~4.5-hour drive from Chicago) puts them at a customer acquisition disadvantage to operators closer to the Chicagoland area.”

The state hasn’t clarified the date till which it is freezing the in-person registration requirement. However, it is expected to continue until at least September 1. This suggests that Pritzker wants the sportsbooks operators in the area to gain as much leverage as they can before the NFL season officially begins. The first game of the league will be held on September 10.

Illinois is the sixth-largest state and is one of the biggest sports betting markets in the Midwest. It also has a rich sporting history along with devoted fans. It is expected that the state could give a tough competition to Nevada and New Jersey when its spots betting market rolls out on all cylinders. This is easily reflected by the impact of the state’s change in policy had on the shares of DraftKings and other sports betting operators.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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