Loading...
Market
Will DraftKings maintain its market share in high-tax states by June 30, 2025?
3
Resolution / Starting Odds
Yes • 50%
No • 50%
Market share reports from industry analysts or financial reports from DraftKings
Story
DraftKings to Implement Tax Surcharge on Winning Bets in High-Tax States Starting January 2025
Aug 2, 2024, 01:08 PM
DraftKings has announced the introduction of a 'gaming tax surcharge' on winning bets in states with high tax rates, starting January 1, 2025. This surcharge will be applied in Illinois, New York, Pennsylvania, and Vermont, where tax rates exceed 20%. The surcharge aims to lower DraftKings' effective tax rate to 20% in these states and is expected to range between 3% and 5% of net winnings, potentially creating EBITDA upside. In an example provided, a $10 winning bet in Illinois would return $19.68 instead of $20. DraftKings CEO Jason Robins described the surcharge as 'nominal' and 'customer-friendly,' asserting that it will help the company maintain competitive margins and continue marketing efforts. The surcharge will be identified on bet slips and treated as a separate transaction when paying out winnings. The announcement, made during the company's earnings report, has led to a 9% drop in DraftKings' stock price since its disclosure.
View original story
Similar markets
Increase in market share • 25%
No change in market share • 25%
Decrease in market share by less than 5% • 25%
Decrease in market share by 5% or more • 25%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Less than 5% • 25%
5% to 10% • 25%
10% to 15% • 25%
More than 15% • 25%
DraftKings loses market share • 25%
FanDuel loses market share • 25%
Both lose market share • 25%
Neither loses market share • 25%
Increase by more than 5% • 25%
Increase by 1-5% • 25%
No change • 25%
Decrease • 25%
Stock price increases • 25%
Stock price decreases by less than 5% • 25%
Stock price decreases by 5% or more • 25%
Stock price remains stable • 25%
Less than 10% • 25%
10%-19% • 25%
20%-29% • 25%
30% or more • 25%
