DraftKings’ plans to implement a gaming tax surcharge in select US states have been branded “delusional” by the head of market monitoring platform Yield Sec.
Ismail Vali, CEO of the technical intelligence platform, said the planned surcharge in Pennsylvania, New York, Illinois and Vermont, where the tax rate is 20 per cent or higher, “completely misses the mark” and will fuel illegal gambling.
DraftKings CEO Jason Robins said during the North American operator’s Q2 2024 earnings call that “every company has to do what is best for their own business… We don’t know, we’ll have to see.”
Vali said: “The sheer notion of passing tax burdens onto consumers within a duality marketplace beset by illegal operator activity displays a fundamental misunderstanding of the real issue: crime.
“The legal industry must focus on combating illegal gambling, which is the true reason behind revenue theft and profitability loss, not tax rates or regulation. It’s time to stop ignoring the real monster in the room.
“’Doing what’s best’ for DraftKings requires doing what’s best for the marketplace, commerce and community overall: do what’s necessary as an operator to combat crime affecting your licensed revenues. It’s your money, after all."
DraftKings’ plan has stirred debate across the gaming industry and Rush Street Interactive CEO Richard Schwartz has confirmed that the BetRivers owner will not be following suit.
