“Recent and proposed state sports betting tax hikes could dampen the online gaming sector’s positive growth momentum,” Fitch Ratings Associate Director David Lowenstein wrote in a 16 June investor note. He observed, however, that the ratings of market leaders FanDuel and DraftKings would nevertheless likely be unaffected.
Those bond ratings, Lowenstein wrote, “continue to reflect the sector’s strong growth prospects, conservative financial structures and robust [free cash flow] profile.” On the other hand, the sector’s competitive dynamics (high) and the public-policy landscape (evolving) had to be considered, he added.
