some DD on DKNG from wallstreetbets. PBH $30 by EOYFor those in...

some DD on DKNG from wallstreetbets. PBH $30 by EOY

For those in DKNG, there are potentially momentous events coming up in the next few months as state legislative sessions are coming to a close from now through about June. This could explain why there is a lot of unusual option activity around August at the 90c.

The states in play and their progress on passing sports gambling either retail or mobile:

Texas: Two lawmakers filed legislation this week that would legalize casinos and sports betting in Texas. HJR133 was filed in the House on Tuesday and SJR49 filed in the Senate. The Texas Governor has also voiced support for the bill as well as the Sports Betting Alliance, which represents teams like the Dallas Mavericks, the Dallas Cowboys, and the Rangers. The Sports Betting Alliance has showed favoritism towards online sports betting too. This bill is supported between the two parties and the legislative session runs to the end of May.

Florida: Legislative sessions are in progress and run to April 30th. The key part of negotiations is the Seminole Tribe of Florida. They offer a heavy endorsement as they run all casinos in the state of Florida. If they’re brought to the table in support of this bill soon, we could see some real pressure as the Governor is open to legalizing sports betting too. Though, as it stands, it doesn’t seem likely in this session.

Arizona: Session ends on May 28th. Bill passed the House but faces political scrutiny in the Senate. Governor supports the legislation but its chance could end up grim if it gets stalled because of another bill trying to get horse racing on the ballot.

Maryland: Session ends in early-mid April (I think the 12th) Hogan is basically ready to sign this thing. It includes online sports betting too. This one practically a done deal.

South Dakota: March 29th marks the end of the session. The bill in this state easily cleared both the Senate and House. Governor is expected to sign off.

Kansas: Session ends May 30th. The bill passed the Senate but its now in the House. Lawmakers in Kansas largely support the bill but there appears to be disagreements for who gets the gambling licenses. The Senate bill included 11 or 12 online gambling licenses, of which DKNG is included (of course).

DKNG could have a great year if some of these go through and could have an explosive one if they all do. The pandemic took a toll on these states and they need as much taxes as they can get. Sports betting is one way they can do that and it has bipartisan support across the aisle. Considering the DKNG already rose their estimates for the year, they could be thinking that their chances are looking good as well. As with all things political, buy the rumor and sell the news. Here’s to a maybe good year, my kings (and queens). Cheers

https://www.reddit.com/r/wallstreetbets/comments/m4bb9v/the_dkng_legislative_gamble/