Key insights
- DraftKings and Flutter Entertainment shares declined after Ohio lawmakers proposed strict limits on sports betting, including eliminating mobile betting, restricting wager types, capping individual wagers, and limiting the number of bets per day. This represents a significant rollback of Ohio's current sports betting framework and could negatively impact revenue for these companies.
Investing.com -- DraftKings (NASDAQ: DKNG) shares fell 7% Thursday, while Flutter Entertainment (NYSE: FLUT) dropped 3.5% after lawmakers in Ohio proposed legislation that would impose strict limits on sports betting in the state.
The proposed legislation would eliminate mobile betting entirely and restrict the types of wagers Ohioans could place, according to multiple media sources including NBC4. Under the bill, prop bets, in-game bets, and parlays would be prohibited.
The legislation would also cap individual wagers at $100 and limit bettors to eight wagers within a 24-hour period, according to NBC4.
Ohio legalized sports betting in 2023, becoming one of the largest markets for online gambling operators. The proposed restrictions would represent a significant rollback of the state's current sports betting framework.