DraftKings Inc. is throwing in the towel on its plan to hit winning bettors with an extra fee if they live in a state with a higher tax rate.
The Boston-based bookmaker announced the decision shortly after the chief executive of FanDuel-parent Flutter Entertainment PLC said the company had no plans to institute a gaming tax surcharge of its own. DraftKings Inc. is throwing in the towel on its plan to hit winning bettors with an extra fee if they live in a state with a higher tax rate — but only after its chief rival FanDuel made it clear it would not follow suit.
"We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge," DraftKingsearlier this year that boosted the amount DraftKings and others must pay to as high as 40% of their revenue. An investor presentation from DraftKings suggested the proposed"gaming tax surcharge" could be worth a small percentage of a bettors' winnings, such as 3.2% in Illinois. The company also suggested the measure could help with profitability, noting there could be"upside" to its adjusted earnings starting next year, when it planned to begin imposing the fee.
All that’s over now, though, as DraftKings says it is scrapping the plan. It is doing so after Flutter, ESPN BET-operator PENN Entertainment, and BetRivers-operator Rush Street Interactive all indicated theyIf you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so.
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