New, state-level tax increases and the cost of entering the prediction markets will be a squeeze on DraftKings’ revenue in the near future. That’s the forecast of Jefferies Equity Research analyst David Katz, in a 2 July investor note.
“We reiterate our bullish view on the online gaming sector, while reflecting recent state tax increases in our estimates,” Katz wrote. Lower late-2025 and 2026 earnings for DraftKings, he said, would be partly offset by a positive second quarter.
Describing his views of DraftKings as “conservative,” Katz said they were relatively unchanged in the wake of higher levies and Kalshi’s incursion into sports betting.
