DraftKings to Charge Surcharge to Customers

Online sports betting operator DraftKings will be charging a surcharge it intends to pass down to customers.

This surcharge will be issued in the four states that impose a 20% or greater tax onto DraftKings.

These states include: Illinois, New York, Pennsylvania and Vermont.

In other words, YOU the customer will be punished for DraftKings having to pay that increased tax in Illinois.

Pro sports bettor Captain Jack Andrews writes:

"DraftKings will be adding a SURCHARGE to be subtracted from YOUR net winnings to pay for THEIR TAX on gambling revenue. The money they make from losing bettors."

If you bet in IL, NY, PA, or VT get a load of this.

DraftKings will be adding a SURCHARGE to be subtracted from YOUR net winnings to pay for THEIR TAX on gambling revenue. The money they make from losing bettors.

Wow. Just wow. https://t.co/jDrnlMPXZd

— Captain Jack Andrews (@capjack2000) August 1, 2024

From DraftKings:

"There is a solution here.  As you know many revenue-based taxes are passed along to the customer.  The online gambling industry has chosen not to pursue this approach in lower tax jurisdictions, but it has in higher tax jurisdictions like Germany.  We are planning to implement a gaming tax surcharge on a customer's Net Winnings in any state with a tax rate above 20% that has multiple sports betting operators. The surcharge will be fairly nominal to the customer." 

The company explains that, in Illinois, this surcharge will amount to a low to mid-single digit percentage on Net Winnings.

This surcharge will commence as of January 1, 2025.

By  Nagesh Rath Born in Punjab, India, Nagesh has been writing for the Gambling911.com website since 2019.  He mostly covers the more controversial stories impacting the world of gambling, specializing in poker. Nagesh's favorite sport is cricket.  This beat reporter operates from our Miami Beach base where he resides with his wonderful wife Ravjeer and three daughters.