DraftKings just decided to withdraw its previous decision to charge more for high-wager wagers. The sportsbook originally intended to target states with a tax rate of 20% or above when implementing this surcharge on January 1, 2025. Players in Vermont, Pennsylvania, Illinois, and New York would have been influenced by this shift. But in light of user reaction, DraftKings has decided against this surcharge. “We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge,” the company stated. They emphasized their commitment to offering the best value in the industry to their loyal users.
Similarly, Flutter CEO Peter Jackson announced that Flutter would not implement a winner’s surcharge on FanDuel sportsbook, of which Flutter holds a majority stake. Jackson highlighted the importance of customer retention, stating, “The lifetime value of customers is becoming more important over time.” He added that it’s crucial for businesses to reinvest and explore growth and product enhancement opportunities.
The decision by DraftKings to retract the surcharge follows a recent tax overhaul by the Illinois General Assembly. The new spending plan includes a progressive tax scale, reaching up to 40%, a sharp increase from the previous flat rate of 15%. This significant change prompted DraftKings and FanDuel to reconsider their operations in Illinois, with both companies expressing concerns about the impact on their business.
In addition, Rush Street Interactive (RSI) CEO Richard Schwartz confirmed that his company will not introduce any player surcharges. Schwartz emphasized RSI’s commitment to a “customer first approach,” stating, “RSI remains committed to maintaining its leadership position in the industry by continuously prioritizing the needs and preferences of its players.” He noted that RSI’s focus on customer satisfaction and its innovative rewards programs set a high standard in the online gaming sector.