Proactive Investors - Flutter Entertainment PLC (LON:FLTRF) is well positioned to address the likes of higher taxes, potential clampdowns on VIP schemes and prospective bans on college betting, analysts have said.
Responding to media reports that each were being called for, Jefferies argued “Flutter sits in a relatively better position to address [these]”.
As per the Wall Street Journal, Senator Richard Blumenthal has sent letters to eight gambling firms urging an end to using player data to target VIP schemes at repeat, and potentially problem, customers.
“Flutter has always positioned itself as the most responsible online gambling operator and, unlike peers, does not run VIP schemes that bonus staff for encouraging higher customer spend,” Jefferies said.
Responding to calls by the National Collegiate Athletic Association for a ban on college prop betting, Jefferies noted just five states actually allow the practice.
Likelihood that New Jersey could tax gambling firms 30% instead of 15% is set to be hampered by a resultant prospective rise in illegal betting, or damage to market competition meanwhile, Jefferies added.
"Where taxes have risen elsewhere, operators recapture lost margin in less favourable odds to customers and market share shifts to the larger operators," the bank said.
Flutter, which had plummeted on Wednesday, rose 2.1% to 16,000p on Thursday.