States aim to increase taxation on online sports betting companies like DraftKings and FanDuel
- States are seeking to raise taxes on online sports betting companies such as DraftKings and FanDuel to boost revenue.
- The $16 billion online sports gambling industry is expanding, leading states to reevaluate their tax strategies.
- Increased taxation could have significant financial implications for the industry and state governments.
States are seeking to increase their revenue from the expanding $16 billion online sports gambling industry through partnerships and tax hikes. Illinois recently changed its tax rate for online sports betting companies, potentially impacting companies like DraftKings and FanDuel. The industry saw a 22% revenue increase in the first quarter of 2024, with Illinois generating over $1.5 billion in tax revenue from online sports betting operations and casinos. The move in Illinois could lead to changes in marketing strategies for companies like DraftKings and FanDuel. Flutter Entertainment and DraftKings are key players in the market, with expectations of profitability in the future. Other companies, such as MGM Resorts and Penn Entertainment, have also benefited from the growth of online sports gambling.