Draftkings Sportsbook at the WM Phoenix Open Syndication: Arizona Republic
By Reice Shipley on

One of the bigger stories around the sports gambling world was the proposed gaming tax surcharge by DraftKings which was set to affect numerous states. But hours after one of their biggest competitors, FanDuel, decided not to implement the same surcharge, DraftKings also issued a statement saying they would be nixing their plans.

Earlier this month, DraftKings CEO Jason Robins announced the company would add a 3.2 percent surcharge on winning wagers in states with rates over 20 percent. The states that fall into this category include Illinois, Pennsylvania, Vermont, and New York.

This essentially means that gamblers would need to win wagers at an even higher rate than before to remain profitable on a long-term basis. DraftKings used Illinois as an example when breaking down what that would look like, detailing that with the surcharge, a $10 wager at even odds would result in only a $9.68 payout instead of $10.

There was obvious pushback as well as concern that DraftKings’ competitors would follow suit and make this the standard in sports gambling moving forward.

However, Flutter Entertainment, FanDuel’s parent company, shared on Tuesday that they will not follow DraftKings’ lead. Flutter CEO Peter Jackson shared that they have “no plans at this stage” to implement the surcharge.

“We think that those types of responses is the best customer option, and we have no plans to introduce a surcharge for winners at this stage,” he said.

Just hours after FanDuel’s statement, DraftKings decided to backtrack on its plans and inform its customers they would not implement the surcharge after all.

“We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge,” the statement read. “We are always committed to delivering the best value in the industry to our loyal customers.”

DraftKings can play this off as listening to their customers all they want, but it seems clear their decision to nix the surcharge was made due to FanDuel’s announcement.

Many around the sports gambling world took to social media to share their reaction to the news, sharing the sentiment that DraftKings essentially got fooled into assuming that FanDuel would follow their lead.

[DraftKings News on X]

About Reice Shipley

Reice Shipley is a staff writer for Comeback Media that graduated from Ithaca College with a degree in Sports Media. He previously worked at Barrett Sports Media and is a fan of all things Syracuse sports.

View all posts by Reice Shipley