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How will DraftKings' annual gross revenue change in fiscal year 2025 post-tax hike?
5
Resolution / Starting Odds
Increase • 33%
Decrease • 33%
Remain stable • 34%
Annual financial reports from DraftKings
Story
Illinois Senate Approves 40% Tax Hike on DraftKings, Other Sports Betting Operators
May 28, 2024, 02:04 PM
The Illinois Senate has approved a significant tax hike on sports betting operators, with the new tax structure outlined in HB 4951. The progressive tax rate will range from 20% to 40% depending on annual gross revenue (AGR), up from the current rate of 15%. This decision has caused shares of major sports betting companies like DraftKings and FanDuel's parent company, Flutter Entertainment, to drop significantly. DraftKings' stock fell by as much as 12% following the news. The new tax rates will take effect on July 1st. Lawmakers have proposed this increase as a means to boost state revenue, with funds to be shared between the capital and general revenue funds. Additionally, an extra 1% tax on video gaming terminals has been included in the bill. The Illinois Senate's decision has sparked concerns among investors about the potential spread of similar tax hikes to other states. FanDuel, which paid $62M in tax in 2023, would have paid approximately $145M under the new structure. The bill passed with a 37-22 vote on May 26th.
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Increase in total revenue • 50%
Decrease in total revenue • 50%
Decrease • 25%
Increases by up to 10% • 25%
Increases by 11% to 20% • 25%
Increases by more than 20% • 25%
Increase by over 20% • 33%
Increase by 10-20% • 33%
Increase by less than 10% • 33%
Increase in Earnings • 33%
Decrease in Earnings • 33%
No Significant Change • 34%
Less than 10% • 25%
10% to 20% • 25%
21% to 30% • 25%
More than 30% • 25%
Less than 200% • 33%
200% to 250% • 33%
More than 250% • 34%
Increase in net revenue • 33%
Increase in net income • 33%
Decrease in operating expenses • 34%