Why DraftKings Inc. (DKNG) Crashed On Monday

We recently published a list of These 10 Stocks Already Sank in June. In this article, we are going to take a look at where DraftKings Inc. (NASDAQ:DKNG) stands against other worst performers on Monday.

DraftKings saw its share prices decline by 5.99 percent on Monday to end at $33.73 apiece following news that Illinois is set to raise its taxes on legal sports wagers to boost its revenues.

Under the state budget set to be approved by Illinois Governor JB Pritzker, it would slap a 25-cent tax on the first 20 million wagers a company takes, and 50 cents for each bet past the threshold. The state was looking to raise more than $36 million in revenues yearly.

Why DraftKings Inc. (DKNG) Crashed On Monday

A woman at a betting table paying out customers who won their sports bets.

According to analysts, Illinois’ new state law would cost DraftKings Inc. (NASDAQ:DKNG) some $68 million in additional taxes.

In other news, DraftKings Inc. (NASDAQ:DKNG) is facing a lawsuit filed by a bettor from Iowa over its refusal to pay him worth $14.2 million in purported winnings.

Plaintiff Nicholas Bavas said he studied weather reports to determine that rain would likely shorten the 2024 AT&T Pebble Beach Pro-Am tournament.

As the third round ended and bad weather threatened to cancel the tournament, Bavas placed five bets on DraftKings Inc. (NASDAQ:DKNG), based on how the players were ranked at that point. He picked Wyndham Clark to win the tournament, who was later named the champion.

Overall, DKNG ranks 6th on our list of worst performers on Monday. While we acknowledge the potential of DKNG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.