Jefferies analyst forecasts Illinois tax impact on DraftKings cash flow
Jefferies analyst David Katz estimated that Illinois’ higher sports betting taxes would reduce DraftKings’ cash flow by $100 million over the next 18 months. He forecast a $10.2 million cash-flow contribution from Jackpocket in 2024 and $12.4 million in 2025, following the acquisition’s second-quarter close. Katz maintained a Buy rating and a $54 price target.
The forecasts quantify expected tax costs and acquisition contributions for investors assessing DraftKings’ outlook.