Whatever the outcome of a trial in New Jersey, its result favors both DraftKings and FanDuel parent Flutter Entertainment, Jefferies Equity Research analyst David Katz concluded in an investor note published September 11.
At issue in the Garden State courts is whether Kalshi could continue to offer sports wagers. Katz wrote, “press reports and our industry sources suggest that Kalshi appeared to fare more positively, albeit not from all perspectives.” He added that any continuation of the status quo favored Kalshi.
In oral arguments, Kalshi contended that its self-proclaimed “odds” and “bets” are in fact financial swaps. State regulators argued otherwise, classifying them as sports bets and therefore subject to New Jersey regulations.
