Reported 4 months ago
Shares of DraftKings and Flutter Entertainment took a nosedive after the Illinois state Senate passed a budget including a tax increase on sports betting companies, making Illinois potentially the second most expensive state for such operations. Analysts and investors are worried about the ripple effect on other states, as the new tax law would require operators to pay up to 40% based on revenue thresholds, a significant increase from the current 15% rate. This move raises concerns about the impact on company cost structures and customer acquisition in new states, as well as the possibility of other states adopting similar tax hikes.
Source: YAHOO