DKNG - Why DraftKings Stock Just Crashed 13.5%
2024-05-28 13:11:19 ET
Shares of online sports gambling website DraftKings (NASDAQ: DKNG) got decked on Tuesday, falling 13.5% through 11:50 a.m. ET. The Wall Street Journal reported that Illinois legislators have approved their 2025 budget, including a provision that would more than double taxes on sports betting operators .
Citing multiple analyst reports, TheFly.com estimates that the new law, if signed by the governor, will raise DraftKings' Illinois tax rate from 15% to 36% or 37%.
It's not 100% clear how bad this news is for DraftKings, which paid only $10.2 million in income tax last year, according to data from S&P Global Market Intelligence . Even that sum is surprising, though, because the company reported an operating loss of $786 million last year. So you wouldn't ordinarily expect it to have paid any income tax at all.
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Why DraftKings Stock Just Crashed 13.5%