What happened
Shares of DraftKings (DKNG 0.59%) were down 4% in afternoon trading Monday after Florida Republicans delayed the launch of sports betting in the state until October. They also killed a deal with the Seminole Tribe for a broad expansion of online gambling.
So what
Gov. Ron DeSantis had worked out a deal with the Indian nation to authorize sports betting and even micro-betting, or bets on outcomes of events occurring within an event. It would have also allowed the state to negotiate again with the tribe in three years to authorize additional forms of online and mobile gaming.
Image source: Getty Images.
Republican leadership in the state legislature said, "Even the mere possibility of this was unacceptable," according to the Tallahassee Democrat.
Critics of the deal had lobbied against it, saying the bill would, as one opponent put it, "turn every cellphone into a slot machine in Florida."
Now what
The Seminole Tribe of Florida has exclusive rights to certain kinds of gambling in the state, and has the right to assign licenses to sportsbooks; that remains unchanged by the development.
The legislature will vote on the revised measure this week and it still needs to be approved by federal Indian gambling regulators in the Interior Department.
DraftKings stock is down over 20% this month despite having beat Wall Street earnings estimates and raising its guidance for the full year. Valuation has been a main concern. The Florida negotiations only represent a delay to DraftKings' expansion plans in the state, not an end to them.
