DraftKings has made a dramatic u-turn on its decision to introduce a surcharge on winning bets in four high-tax US states, after rival sportsbooks FanDuel and BetRivers refused to follow suit.
DraftKings had proposed the surcharge for the states of New York, Illinois, Pennsylvania, and Vermont starting in January 2025 to offset tax rates, which had been increased to 20 per cent in these states.
DraftKings said: “We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers.”
Peter Jackson, CEO of Flutter Entertainment, who owns FanDuel, had earlier said: “We think that moderating levels of generosity or reducing local marketing is the best customer option. We have no plans to introduce a surcharge for winners. Most states have taken a sensible approach to date. I think it [higher tax rates] will drive customers to offshore operators or potentially onshore operators who are offering unregulated, untaxed prop parlays under the guise of sweepstake.”
Richard Schwartz, CEO of Rush Street, owners of BetRivers, had commented: “As we put our customers first, it was an easy decision for us. RSI remains committed to maintaining its leadership position in the industry by continuously prioritizing the needs and preferences of its players. We believe that RSI’s focus on customer satisfaction, coupled with its innovative rewards and loyalty programs, sets a benchmark for excellence in the online gaming industry.”
Caption: DraftKings CEO Jason Robins
