Shares of DraftKings Inc. (NASDAQ:DKNG) saw a significant uptick Monday afternoon. This surge comes on the heels of a pivotal decision by the U.S. Supreme Court that has significant implications for the future of online sports betting in Florida and optimism that taxes will not be introduced into New Jersey's 2025 budget, which needs to be finalized by June 30.
What Happened: According to APNews, the U.S. Supreme Court refused to hear a challenge to an agreement granting the Seminole Tribe exclusive rights to operate online sports betting in Florida. This compact, initially struck in 2021 between the Seminole Tribe and Governor Ron DeSantis, was designed to generate substantial revenue for both the tribe and the state.
The deal's opponents, including West Flagler Associates and the Bonita-Fort Myers Corp., contended that the compact gave the tribe an unfair monopoly and that the U.S. Department of Interior's approval of the compact violated the Indian Gaming Regulatory Act, which mandates that gambling activities take place on tribal lands.
In March, the Florida Supreme Court dismissed a challenge from these companies, stating that they had filed an incorrect type of petition. The decision by the U.S. Supreme Court not to take up the case effectively removes a major legal obstacle to the compact.
What Else: Daniel Wallach, a South Florida attorney specializing in sports betting law, highlighted the significance of the ruling, noting that it clears the way for the Seminole Tribe to continue and potentially expand its online sports betting operations without further legal impediments.
DKNG Price Action: DraftKings shares were up by 7.81% at $41.95 on Monday, according to Benzinga Pro.
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