• Loading stock data...
Tuesday, July 1, 2025

DraftKings Cancels Winner Surcharge Plan After Pressure

  • After FanDuel said it won’t follow DraftKings in implementing a surcharge, DraftKings followed FanDuel and canceled its plan.
  • DraftKings recently closed its NFT arm and sold VSiN back to Musburger Media.
DraftKings
DraftKings

Just two hours after FanDuel announced it would not join its rival DraftKings in charging bettors a winner’s surcharge in high-tax states, DraftKings canceled its surcharge plan in a surprise move.

“We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge,” DraftKings tweeted at 6 pm EST Tuesday.

FanDuel parent company Flutter Entertainment (FLUT) reported sales and profits Tuesday that beat analyst expectations. As it rides a new wave of domestic customers, the company said it will not introduce a 3% to 5% winner surcharge for players in high-tax states like Illinois and Pennsylvania, as rival DraftKings had announced a plan to do. In addition to social media outcry when DraftKings announced its plan on August 1, ESPN Bet and BetRivers both announced in the past week they would not impose a winner surcharge.

The different approaches from various sports betting operators came after agencies such as the Illinois Gaming Board announced an increase in taxes on legal bets, effective July 1. FanDuel said it will mitigate half the cost of those tax hikes next year “through locally optimized and promotional market spend.”

Flutter CEO Peter Jackson said on the earnings call there’s a “happy medium” for tax rates, but he doesn’t endorse a system that punishes heavy investors, believing it could push players into offshore gambling. 

Flutter stock was up 10% after hours Tuesday.

DraftKings has had more of a mixed-bag summer: It recently sold gambling television channel VSiN back to Musburger Media just three years after acquiring it and shuttered its NFT arm amid legal concerns. DraftKings, in its own second-quarter earnings report Aug. 1, reported its first profitable quarter, but revenue missed analyst expectations. 

Flutter CEO Jackson also said he has no plans to rename the company or pursue an initial public offering, and he sidestepped rumors that Flutter could merge with Penn Entertainment, which partnered with Disney to create ESPN Bet, saying “some of the best deals are ones we haven’t done.”

The company is also looking for places to spend its profits (“capital allocation opportunities,” in its words) after it reported $297 million in net income, an increase from $64 million year-over-year.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Nov 29, 2024; Indianapolis, Indiana, USA; Detroit Pistons guard Malik Beasley (5) celebrates a shot in the second half against the Indiana Pacers at Gainbridge Fieldhouse.

Malik Beasley’s Messy Offseason Includes $2.25M Suit From Ex-Agency

The former Pistons player is not having a good summer.

Gauff, Pegula Out at Wimbledon in Nightmare Start for American Women, ESPN

Coco Gauff and Jessica Pegula were ranked Nos. 2 and 3, respectively, entering Wimbledon.
Dewanna Bonner
exclusive

WNBA Cutdown Deadline Could Spur Deals for DeWanna Bonner, Emma Meesseman

The two big-name free agents could find their WNBA homes in July.
Jun 19, 2025; Indianapolis, Indiana, USA; Indiana Pacers guard Andrew Nembhard (2) drives to the basket against Oklahoma City Thunder forward Chet Holmgren (7) during the third quarter during game six of the 2025 NBA Finals at Gainbridge Fieldhouse.

‘Existential Threat’: Underdog Sports Sues to Stop AG’s Fantasy Sports Opinion

The California AG is expected to release his opinion by Thursday.

Featured Today

The Battle Over Wimbledon’s Ambitious Expansion Plan

A classic NIMBY standoff on one of the most hallowed grounds in sports.
Seattle Rough & Tumble
June 28, 2025

Women’s Sports Bars Are on the Rise. Survival Isn’t Guaranteed

Some women’s sports bars are cashing in. Others are clawing for funding.
June 27, 2025

Shitposters Have Taken the Reins of Pro Sports’ Official Voices

Meet the social media pros turning sports teams into internet trolls.
Jun 17, 2025; Sunrise, Florida, USA; Florida Panthers center Sam Reinhart (13) hoists the Stanley Cup after winning game six of the 2025 Stanley Cup Final against the Edmonton Oilers at Amerant Bank Arena
June 26, 2025

Stanley Cup’s International Summer Tour: Rules, Repairs, and Raucousness

No pro trophy tour compares to the NHL’s three-month global victory lap.
Mar 15, 2025; Detroit, Michigan, USA; Detroit Pistons guard Malik Beasley (5) celebrates in the first half against the Oklahoma City Thunder at Little Caesars Arena.

Malik Beasley Is Latest Betting-Related Headache for NBA

It’s the third NBA betting scandal in the last year-and-a-half.
Mar 30, 2025; Spokane, WA, USA; LSU Lady Tigers guard Flau'Jae Johnson (4) shoots against UCLA Bruins center Lauren Betts (51) during the second half of a Elite 8 NCAA Tournament basketball game at Spokane Arena.
June 17, 2025

Louisiana Sports Betting Set to Aid LSU and Other State Schools

Louisiana lawmakers have been creative in finding state money for NIL.
Quincy Taylor
June 17, 2025

Several Americans Banned in British Basketball Game-Fixing Scandal

Five former Surrey Scorchers players were hit with lengthy gambling suspensions.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
exclusive
June 13, 2025

FanDuel, Kalshi Have Discussed a Deal

Could FanDuel take an equity stake in Kalshi?
Fanduel
June 10, 2025

FanDuel, DraftKings Add Illinois Transaction Fee in Response to New Tax

FanDuel will charge 50 cents per bet starting Sept. 1.
May 1, 2024; Los Angeles, California, USA; A general overall view as Dallas Mavericks and LA Clippers players run across the Clippers logo at midcourt in the first half during game five of the first round for the 2024 NBA playoffs at Crypto.com Arena.
June 6, 2025

Kalshi’s Momentum Fuels Crypto.com’s Fight Over Sports Markets

Crypto.com cited a recent Kalshi court victory in its own fight against Nevada.
Illinois Gov. JB Pritzker speaks after giving his annual State of the State address on Wednesday, Feb. 19, 2025, in Springfield.
June 2, 2025

Illinois Passes New Sports Betting Tax in Middle of the Night

This is the second straight year Illinois approved a tax increase on sportsbooks.