Draft Kings introduce 'Premium charge' on their SPORTSBOOK

[Euler]

DraftKings’ surcharge on New York sports bettors the latest ‘threat’ in state tax battles

DraftKings announced on Aug. 1 that beginning in 2025, customers located in states with higher tax rates (where 30 percent of profits or higher go to the state) will now have to pay a surcharge on every winning bet to help pay that burden.

This surcharge will force bettors to pay a three to four percent fee on all winning bets’ profits and would affect players in New York, Illinois, Pennsylvania and Vermont.

No other sportsbook has announced plans to do this. So, why is DraftKings?

https://nypost.com/2024/08/07/sports/dr ... st-threat/

[jamesedwards]

Perhaps business from those states is unprofitable due to the higher tax so they are happy to lose them if the leave.