Truist analyst Barry Jonas notes that Maryland’s budget proposal published today includes a proposed hike in the state’s sports betting tax rate to 30% from 15% as well as its land-based table games tax rate to 25% from a prior 20%. On the online sports betting side, Maryland would become the third state to hike taxes if it does so, but the land-based proposal is “the first we’ve seen,” the analyst tells investors. The firm views today’s news as a negative for gaming stocks, though for online sports betting it believes the increase to a 30% tax rate “could have been much worse,” the analyst added. The firm outlined its preliminary estimates of the gross impact to online operators including DraftKings (DKNG), Flutter Entertainment (FLUT), MGM Resorts (MGM), Caesars (CZR) and Penn Entertainment (PENN) as well as the potential impact to land-based operators including MGM, Penn and Churchill Downs (CHDN).
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DKNG:
- Maryland proposes to raise sports betting tax rate to 30% from 15%
- DraftKings price target raised to $49 from $47 at Morgan Stanley
- Bet On It: Customer friendly results adversely impact Flutter U.S. revenue guide
- 3 Best Stocks to Buy Now, 1/10/2025, According to Top Analysts
- Delta Air Lines (DAL) Enters Sports Betting Scene with DraftKings Partnership