DraftKings is set to introduce a surcharge on winning bets in states with high sports betting tax rates starting next year, aiming to enhance profitability.
This move affects states like Illinois, New York, Pennsylvania, and Vermont, where taxes exceed 20%. DraftKings CEO Jason Robins justified the surcharge by comparing it to taxes in other industries and noted that it will be a small percentage of winnings.
This decision follows DraftKings’ announcement of its first profitable quarter as a public company, reporting a net income of $63.8 million for Q2 and raising its revenue forecast.
Despite a reduction in its adjusted EBITDA guidance for 2024, the company remains optimistic about its growth prospects, citing healthy customer engagement and expansion into new markets.
Peoplesmind