Shares of Flutter Entertainment (NYSE: FLUT) rose modestly on Monday following Hedgeye’s initiation of coverage, naming the stock a top long idea.

In a report to clients, analyst Sean Jenkins emphasized the dominance of the online sports betting market by Flutter and DraftKings (NASDAQ: DKNG), recommending investors consider both gaming equities.

Year-to-date, shares of Flutter, the parent company of FanDuel, have risen 10.53%, while DraftKings is up 6.33%. However, DraftKings has been under pressure recently due to Illinois’ graduated tax rate on sports wagering, significantly increasing taxes for major operators like FanDuel and DraftKings.

Look Beyond Q2 with Flutter Entertainment

The Illinois tax hike impacted some sports betting stocks in the second quarter, but the expected contagion to other large sports wagering states hasn’t materialized yet.

DraftKings is scheduled to report second-quarter results on August 1, with Flutter following on August 13.

New York State of Mind

New York, the largest state with an open sports betting market by population, also boasts the largest handle despite its 51% tax rate, the highest in the country. This hasn’t deterred sportsbook operators, with FanDuel and DraftKings maintaining significant dominance.

Jenkins noted that investors are more optimistic about Flutter as a New York play but stated that both Flutter and DraftKings are top picks in his coverage universe.

With Octabet betting news, discover best online betting site Singapore. Start your winning journey today! Register now!