Tyler Crowe

Hey, everyone, just a quick reminder.

We love answering your questions on air.

So if you do have them, go ahead and email us at podcasts at fool.com.

That's podcasts at fool.com.

We only have three requests when you bring them in.

Number one, keep it foolish.

Number two, keep it short enough that we can read it on air.

And number three, we can't give personalized advice.

We might get in a little bit of trouble with the SEC or the Federal Trade Commission if we do.

So try to keep it as a generic, what should investors do rather than what should I do?

So today's question comes from Jack from Denver.

Hey guys, love your podcast.

As a novice when it comes to stocks, I have been interested in some of the gambling stocks, mainly DraftKings and Flutter, tickers DKNG and FLUT.

Flutter, of course, owning FanDuel.

Since their recent drawdowns, I think mostly related to prediction markets these days, what are your thoughts on these stocks being viable long-term winners with the competition from prediction markets coming?

Thanks, Jack from Denver.

And Travis, gaming has, I don't know about sportsbooks, but I know that you have followed the Las Vegas casino industry for a long time.

So what do you think of Jack's question here?

Yeah, and I just want to, before we wrap this up here, just think, you know, when we hear the regulatory thing, part of the reason prediction markets are the way that, you know, it works in that way is it's more tax efficient for you because it's a commodities future.

And if you get it wrong, you can deduct the entirety of the loss on your taxes versus if it's a sports book, you can only deduct a portion of it because it's considered gambling deductions, which are considerably smaller than futures contracts.