DraftKings Stock Tanks on News of Surcharge on Winnings
- DraftKings stock price fell to 10% Friday morning.
- The company plans to impose a low to mid single digit surcharge on winnings in four states where the operating sales tax is above 20%.
- DraftKings has so far said the new surcharge will apply in Vermont, Pennsylvania, New York and Illinois.
- Activists groups voicing concern over Josh Shapiro, Mark Kelly as Kamala Harris about to make her choice.
- Paris Summer Olympics medal betting odds for Track and Field.
DraftKings Share Price Plummeted Friday Following Surcharge News
DraftKings stock tanked more than 10% in trading Friday morning, as consumers reacted to the new surcharge fees the company is proposing in states where their operating tax is 20% or greater. Four states meet that criteria including Pennsylvania, New York, Vermont and, more recently, Illinois increased its tax to above the 20% mark on sports betting businesses.
The new fee would be on net winnings and range from a low single digit to mid single digit percentage. A $5000 win could see as much as $250 shaved off, maybe more. This is also before taxes. It's no wonder folks are suggesting the real winners here are offshore sportsbooks and pay per head sites that cater to local bookies and agents.
The surcharge would go into effect January 1, 2025. No other betting company is following suit for now. Some, like Caesars Interactive, have said they will not be.
“There is a solution here,” DraftKings CEO Jason Robins said in a letter to shareholders. “As you know, many revenue-based taxes are passed along to the consumer. The online gaming industry has not pursued this approach in lower tax jurisdictions, but it has in higher tax jurisdictions such as Germany.”
The news also comes after DraftKings gambling business realized its first quarterly profit.
Whether customers choose to stick around remains to be seen. Those made aware of the proposed surcharge have near unanimously balked at the idea.
DraftKings is likely hoping customers will accept the concept just as flyers offered little to no resistance when airlines implemented checked baggage fees.
Other states like New Jersey are toying with the idea of raising taxes on operators as well....so stay tuned.
Some Activists Step Up Criticism of Shapiro and Kelly as Harris Closes in on Naming a Running Mate
Pennsylvania Governor Josh Shapiro came into this weekend as the -450 favorite to be selected as Kamala Harris' running mate. Now activists are speaking up.
The progressive activist organization RootsAction.org opposes Shapiro’s views on Israel, school vouchers and the environment. Whether that plays into Harris' decision remains to be seen.
The Philadelphia Inquirer resurfaced an opinion article Shapiro wrote in 1993 as a 20-year-old college student at the University of Rochester where he said peace “will never come” to the Middle East and that Palestinians were “too battle-minded” to coexist with Israel.
Asked about it, Shapiro responded, “I was 20” adding that he long has supported a two-state solution to the Palestinian-Israeli conflict.
“It is my hope that we can see a day where peace will reign in the Middle East,” he said.
Some labor groups have criticized Arizona Senator Mark Kelly, saying he opposes proposed legislation they argue would boost union organizing. The senator’s office counters that while he did not co-sponsor the proposed legislation, he has said he would vote for it on the floor.
Harris and GOP nominee and former president Donald Trump were running neck and neck in the odds with Trump still slightly favored at -130 to Harris at Even odds.
Olympics
Hot Track and Field medal events for Monday:
What Are The Odds to Win - Men's Discus Throw - Track and Field - Paris Summer Olympics
What Are The Odds to Win - Women's 5000m - Track and Field - Paris Summer Olympics
What Are The Odds to Win - Women's 800m - Track and Field - Summer Olympics
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