DraftKings Drops Surcharge Plan After FanDuel Decision

Subhead 1: DraftKings Reverses Course on Surcharge

DraftKings has abandoned a plan to implement a surcharge on winning bets in high-tax states following a similar decision by its main competitor, FanDuel.

The move comes after a tax hike in Illinois earlier this year, which increased the amount that DraftKings and other sportsbooks must pay in taxes.

Subhead 2: FanDuel's Decision a Key Factor

DraftKings CEO Peter Jackson cited FanDuel's decision not to implement a surcharge as a key factor in the company's reversal.

In an interview, Jackson said that Flutter, DraftKings' parent company, "doesn't plan to match rival DraftKings Inc., which said it will start charging a surcharge on winning bets next year."

Subhead 3: Bettors to Benefit

The decision by DraftKings and FanDuel not to implement surcharges is seen as a positive development for bettors, who will not have to pay additional fees on their winnings.

However, some analysts believe that bettors will still end up paying a price in the form of reduced odds or promotions.

Key Points:

* DraftKings has abandoned a plan to implement a surcharge on winning bets in high-tax states. * The decision follows a similar move by FanDuel, DraftKings' main competitor. * Bettors will not have to pay additional fees on their winnings, but some analysts believe they may end up paying a price in the form of reduced odds or promotions.