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📈📊 🎰 Betting on the White House: All-In on Election Madness! 🎰 📊📈

Kia ora Tiger traders! 🇺🇸

The US presidential election betting market is open, and it’s as wild as a share split frenzy! 💥 With Kalshi Inc. leading the charge, political prediction contracts are now up for grabs. Watch out for DraftKings ($DKNG), which could easily jump in and raise the stakes even higher! 🚀

Poll Update:

As of 3 October, 2024, Kamala Harris leads in the national polls with 49.9%, while Donald Trump trails slightly at 45.3%. But it’s tighter than a trader’s grip on a winning call option in battleground states:

• Michigan: Harris at 48%, Trump at 47%.

• Wisconsin: Harris holds 49%, Trump 47%.

• Ohio: Trump slightly ahead at 50%, Harris at 44%.

Analyst Buzz:

If DraftKings dives into this, expect a liquidity surge like a stock hitting earnings expectations! Hedge funds are already strategising, with this new betting frontier seen as a hedge against possible policy shifts.

With the 2024 presidential election now just 1 month away, @Kalshi prediction markets are in the spotlight, and like every trade, this comes with its pros and cons:

• Pros: More transparency and improved data for market forecasting. 📊

• Cons: Risks to election integrity and potential for market manipulation. 😬

But hey Tiger Traders, is this really about market transparency, or are they just eyeing that sweet tax revenue? 🧐💸

$DKNG ratings are still bullish:

🟢 Buy: 13

🟡 Hold: 6

🔴 Sell: 2

Source: Yahoo Finance:

DraftKings Inc. (NASDAQ:DKNG) is the second biggest online sports betting company in America. Estimates show that the firm commands 32% of the market, which when combined with FanDuel’s 35% means that the two control two thirds of the market. This provides DraftKings Inc. (NASDAQ:DKNG) with key advantages, as the firm has benefited from lax regulatory environments all over the US that allowed it to set up operations. These same laws now constrain the entry of new companies in the industry, and the duopoly like nature of its industry means that DraftKings Inc. (NASDAQ:DKNG) has to primarily compete with FanDuel when it comes to cost control, player addition, revenue per player, and other metrics. Additionally, the firm has also been growing its operations through acquisition, with one such deal being its purchase of JackPocket. The deal expanded DraftKings Inc. (NASDAQ:DKNG)’s presence in the broader digital gambling industry by bringing a digital lottery company under its wing. The shares have gained 7.5% since the Fed’s interest rate cuts and could add to these if investors gain additional confidence in the economy.

Fred Alger Management mentioned DraftKings Inc. (NASDAQ:DKNG) in its Q2 2024 investor letter. Here is what the fund said:

“DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming firm designed to ignite the passion of sports enthusiasts through a diverse offering that spans daily fantasy, regulated gaming, and digital media. We believe the company’s expertise in product development and customer acquisition, which established it as the market leader in daily fantasy sports (DFS), positions DraftKings to be a key driver in advancing the U.S. sports betting market’s growth. The company reported strong fiscal first quarter results, with revenues beating analyst estimates due to broad-based momentum in customer engagement and acquisition. However, on May 28th, the Illinois Senate passed a new state budget that includes a tiered progressive tax on sportsbook operators, effective July 1, 2024. This new tax ranges from 20% to 40% on gross revenues, a significant increase from the current 15% tax rate. Despite management’s belief that it can mitigate the tax impact by reducing promotions in Illinois, this development negatively affected the company’s share price.” Overall DKNG ranks 6th on our list of the best NASDAQ stocks under $50 to buy.

Fun fact: Political betting was banned in the US almost 100 years ago until now! Talk about a historic comeback! 🎯

Hey Tiger Traders, with election contracts heating up, is Kalshi about to moonshot, or is DraftKings about to steal the show?

@TigerGPTCould this new political betting frenzy bring unexpected market swings, and should traders be preparing their hedges?

Happy trading ahead. Cheers, BC 🍀

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