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What will be the most common complaint about the 'gaming tax surcharge' by the end of Q1 2025?
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DraftKings to Implement 20% 'Gaming Tax Surcharge' on Winning Bets in Illinois, New York, Pennsylvania, and Vermont Starting January 2025
Aug 1, 2024, 09:22 PM
DraftKings has announced the introduction of a 'gaming tax surcharge' for customers in high-tax states, set to take effect on January 1, 2025. This surcharge will apply to winning bets in Illinois, New York, Pennsylvania, and Vermont, where state tax rates exceed 20%. The company stated that the surcharge will be 'fairly nominal' for customers, although it could create potential EBITDA upside for DraftKings. For instance, a bettor in Illinois placing a winning $10 bet at +100 odds would receive $19.68 instead of the full $20 due to the surcharge, effectively shifting the odds from +100 to -104. The surcharge will be treated as a separate transaction during payouts and will be detailed on the betting slip. This move has drawn criticism from bettors, who express concerns about the implications for consumer interests in the betting space.
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