{"id":3514,"date":"2024-09-24T22:45:51","date_gmt":"2024-09-24T22:45:51","guid":{"rendered":"http:\/\/restaurace-pohoda.eu\/?p=3514"},"modified":"2024-10-10T13:35:18","modified_gmt":"2024-10-10T13:35:18","slug":"ny-regulators-rips-draftkings-scrapped-surcharge-plan","status":"publish","type":"post","link":"http:\/\/restaurace-pohoda.eu\/index.php\/2024\/09\/24\/ny-regulators-rips-draftkings-scrapped-surcharge-plan\/","title":{"rendered":"NY Regulators Rips DraftKings\u2019 Scrapped Surcharge Plan"},"content":{"rendered":"

It took DraftKings less than two weeks to pull the plug on a plan to levy winning sports bets in select high-tax states and it\u2019s a good thing the company did that because had it proceeded, it apparently would have drawn the ire of New York regulators.<\/p>\n

\"DraftKings\"
Inside DraftKings\u2019 Nevada office. A New York regulator criticized the company\u2019s now abandoned surcharge plan. (Image: Nevada Independent<\/em>)<\/figcaption><\/figure>\n

That state, which has the highest sports wagering tax in the US, along with Illinois, Pennsylvania<\/a>, and Vermont, was at the center of the gaming company\u2019s proposal to apply modest levies to winning sports bets. Customers immediately decried the move, saying it amounted to DraftKings passing its tax exposure onto clients. The proposed move didn\u2019t sit well with New York State Gaming Commission Chair Brian O\u2019Dwyer, either, who said he viewed the plan \u201cwith great alarm.\u201d<\/p>\n

\n

I view that proposal as both misleading and detrimental to the consumer,\u201d O\u2019Dwyer said at the commission\u2019s Monday meeting. \u201cI am, of course, pleased that the proposal has been withdrawn, and I remind all our licensees, however, that this commission is committed to protecting the consuming public, and that any proposal such as the one advanced by DraftKings will be a subject to the strictest scrutiny, and if appropriate, be rejected.\u201d<\/p>\n<\/blockquote>\n

New York applies a 51% tax rate to online sports betting.<\/p>\n

DraftKings Swiftly Killed Surcharge Idea<\/h2>\n

DraftKings unveiled the surcharge plan when it delivered second-quarter results on August 1, after rivals BetMGM and Caesars Sportsbook reported financial results without making mention of a similar tax plan.<\/p>\n

\n

For DraftKings, the scenario soon worsened with competitor Rush Street Interactive taking a clear shot at its larger rival, announcing on August 5 that it had no plans<\/a> for tax on winning bets. The final nail in the coffin of the DraftKings tax gambit arrived on August 13 when FanDuel parent Flutter Entertainment reported second-quarter results, noting it wouldn\u2019t be implementing<\/a> a surcharge.<\/p>\n<\/div>\n

Within an hour of the Flutter report, DraftKings announced that it listened to its customers and decided to abandon the four-state surcharge plan. For its part, New York knows it has the advantage of being the fourth-largest state in the country and currently the largest with a competitive online sports betting market, meaning it doesn\u2019t need to change its tax structure to benefit operators.<\/p>\n

\u201cNew York remains an attractive venue for those who are in the business of sports betting, and I see no reason why we should alter our present regulatory or taxing environment,\u201d added O\u2019Dwyer.<\/p>\n

Operators Looking for Ways to Deal with High Taxes<\/h2>\n

In some populous states like Illinois, New York, and Pennsylvania that gaming companies want to operate in, high sports betting taxes are simplay a fact of life. The need to be in those states and others is prompting operators to examine avenues through which they can deal with those taxes while continuing to generate and grow profits.<\/p>\n

\n

For its part, FanDuel said it will trim promotional spending in Illinois. In July, that state launched a graduated tax system on online sports betting, meaning higher revenue operators such as FanDuel and DraftKings will now pay substantially more than smaller competitors.<\/p>\n<\/div>\n

At Bank of America\u2019s Gaming and Lodging Conference earlier this month, DraftKings CEO Jason Robins said the company is examining remedies<\/a> when it comes to contending with high taxes, adding it\u2019s nonsensical for \u201canybody to completely just eat any tax increase that happens anywhere.\u201d<\/p>\n

The post NY Regulators Rips DraftKings\u2019 Scrapped Surcharge Plan<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

It took DraftKings less than two weeks to pull the plug on a plan to levy winning sports bets in select high-tax states and it\u2019s a good thing the company did that because had it proceeded, it apparently would have drawn the ire of New York regulators. Inside DraftKings\u2019 Nevada office. A New York regulator…<\/p>\n","protected":false},"author":1,"featured_media":3516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/3514"}],"collection":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/comments?post=3514"}],"version-history":[{"count":2,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/3514\/revisions"}],"predecessor-version":[{"id":3517,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/3514\/revisions\/3517"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/media\/3516"}],"wp:attachment":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/media?parent=3514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/categories?post=3514"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/tags?post=3514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}