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U.S. Supreme Court refuses to hear challenge to Florida’s online sports betting compact. (00:30) Chegg (CHGG) jumps over 9% after announcing headcount reduction, restructuring. (01:39) McDonald’s (MCD) ends drive-thru AI partnership with IBM as it looks for a broad voice ordering solution. (02:15)

This is an abridged transcript of the podcast.

Sports betting stocks closed higher Monday after the U.S. Supreme Court refused to hear a challenge to an agreement giving the Seminole Tribe in Florida exclusive rights to handle online betting.

The case stems from a 30-year Compact between Florida Governor Ron DeSantis and the Seminole Tribe back in 2021 giving exclusive rights to handle online sports betting through servers placed on Indian reservations in the state.

The agreement was challenged by West Flagler Associates and the Bonita-Fort Myers Corp, which operate racetracks and poker games in the state. The group argued that the Compact between DeSantis and the Seminole Tribe provides a “backdoor” way out of a requirement that a citizen’s initiative is needed to expand casino gambling outside of tribal land.

However, attorneys for the State of Florida and legislative leaders maintained that sports betting is different from casino gambling and is therefore not prohibited by the state constitutional amendment.

As a result, shares of DraftKings (NASDAQ:DKNG), PENN Entertainment (NASDAQ:PENN), and Flutter Entertainment (NYSE:FLUT) were 6%-7% higher at Monday’s close.

Chegg (NYSE:CHGG) shares jumped 20% in extended trading on Monday after the learning platform said it is reducing its global headcount by 23% or about 441 employees as part of a restructuring plan.

The company said it expects to realize non-GAAP expense savings of $40 million to $50 million in 2025 from employee departures, the closure of two offices outside the U.S., as well as other cost rationalizations.

Chegg expects to incur a $10 million to $14 million charge related to the restructuring.

McDonald’s Corporation (NYSE:MCD) plans to end a test run of its AI drive-thru technology that was active in more than 100 restaurants as part of a partnership with IBM (IBM).

According to a company memo seen by CNBC, the fast-good giant will shut off the Automated Order Taker initiative no later than July 26.

The decision by McDonald’s (MCD) is notable, with other chains considering the use of IBM’s (IBM) AI technology at the drive-through window. However, BTIG analyst Peter Saleh warned earlier this year that McDonald’s (MCD) franchisees were expressing frustration that AI order taking updates were infrequent and the real-world testing of the accuracy of the order taking innovation was underwhelming.

McDonald’s (MCD) said it is not ruling out potential AI drive-through plans in the future. “We see tremendous opportunity in advancing our restaurant technology and will continue to evaluate long-term, scalable solutions that will help us make an informed decision on a future voice ordering solution by the end of the year,” highlighted MCD.

McDonald’s (MCD) is also widely expected to integrate AI in other ways, especially after announcing late last year a new partnership with Google Cloud.

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Catalyst watch:

• Hewlett Packard Enterprise (HPE) will hold its HPE Discover event. CEO Antonio Neri will be joined onstage at the Sphere (SPHR) in Las Vegas by Nvidia (NVDA) CEO Jensen Huang.

• Notable investor events include Element Solutions’ (ESI) R&D Day, and Bread Financial’s (BFH) Investor Day.

• Nuvei (NVEI) holders vote on sale to Advent.

• Southwestern Energy (SWN) and Chesapeake Energy (CHK) have holder votes on merger deal.

On today’s economic calendar:

• 8:30 am The May Retail Sales report will be released

• 2:00 pm Chicago Federal Reserve Bank President Austan Goolsbee is scheduled to participate in the “Economic and Monetary Policy” panel before the hybrid 2024 Marshall Forum

And finally, if you plan to attend the Seeking Alpha Investing Summit today in New York City, Wall Street Lunch will be recorded live and in-person at the event. The show will be hosted by Rena Sherbill.