Although no company has confirmed discussions with California tribes, one stock analyst applauded the alleged negotiations. Jefferies Equity Research analyst David Katz voiced that view in an 2 April investor note.
Katz reported that DraftKings, FanDuel (or its parent, Flutter Entertainment), BetMGM, Fanatics were all dickering, via the Sports Betting Alliance, with Native American nations within the Golden State. He called this “clear positive progress.
“Our view is a potential deal raises important questions on structure, risks and returns where we see the issues as balanced,” Katz wrote. While he found the potential market itself to be huge, he predicted it would yield just “a modest positive for our stocks.”
