DKNG - Why DraftKings Stock Cratered and May Fall Further
2024-05-31 16:30:13 ET
According to data provided by S&P Global Market Intelligence , shares of DraftKings (NASDAQ: DKNG) dropped by as much as 15.7% in trading this week after the Illinois Senate approved a new budget that included a big increase in online sports betting taxes. Shares closed the week down 14%.
Nothing has been signed into law, but the Illinois General Assembly passed an amendment to tax online sports wagers by up to 40%. That would be an increase from the current tax rate of 15% and would be taken out of gross revenue, not net income, which is how federal taxes are paid.
Massachusetts was also considering raising taxes on sports betting, but that didn't pass. It seems the growth of online sports betting and iGaming has attracted the attention of lawmakers, who see this as an easy target for new taxes.
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Why DraftKings Stock Cratered and May Fall Further