Mobile betting powerhouse DraftKings is planning a tax on consumers in states with the highest sports betting tax rates, as the company looks to boost profit.
The company announced Thursday that starting next year it will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%.
Fears of tax hikes in gaming pressured DraftKings stock and other betting companies like FanDuel back in May, when Illinois approved a tax hike on sports betting revenue.
The sliding tax rates impose 40% levies on companies with the largest adjusted gross revenue.
New York and New Hampshire each maintain 51% tax rates on sports betting companies.
Persons:
Jason Robins, LSEG, Robins
Organizations:
Mobile, CNBC
Locations:
Illinois, New York , Pennsylvania, Vermont, York, New Hampshire