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DraftKings (DKNG) Imposes Fee to Offset Illinois’ New Tax, Jefferies Maintains a Buy

DraftKings Inc. (NASDAQ:DKNG) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Jefferies analyst David Katz released a note discussing the impact of the Illinois legislature’s approval of a new betting transaction tax on all in-state wagers announced in the first week of June. As a result of the higher tax, operators are expected to adjust their fees accordingly.

The new transaction tax, effective from July 1, requires operators to be charged $0.25 for each bet up to 20 million bets and $0.50 for each additional bet thereafter.

On June 10, Flutter Entertainment plc (NYSE:FLTR), another player in the space, announced a $0.50 fee for each bet made on its FanDuel platform, effective September 1, to offset the added cost. According to Jefferies analyst David Katz, this move is likely to set a precedent across the industry.

Following the development, Katz believed that DraftKings is likely to adopt a similar surcharge model, given its practicality in directly addressing the tax burden. While such a fee could be passed through to consumers, the analyst views the development as moderately positive for the stock. He maintained a Buy rating on DraftKings, with a $60 price target, reflecting continued confidence in the company’s ability to navigate evolving regulatory frameworks.

Notably, two days after the analyst’s note, on June 12, DraftKings also announced that it would implement a $0.50 transaction fee on all mobile and online bets placed in Illinois, effective September 1. While the company CEO, Jason Robins, shared his disappointment over the tripling of the company’s tax rate in the state over the past two years, he offered to remove the fee immediately if the new legislation is repealed.

DraftKings Inc. is a Boston, Massachusetts-based gambling company that offers sportsbook and daily fantasy sports (DFS) services.

While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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