DraftKings reverses course on tax surcharge after FanDuel declines to follow suit

DraftKings read the tea leaves on this one.

DraftKings won’t be adding a gaming tax surcharge after all, the company announced Tuesday evening.

After previously announcing two weeks ago it would be hitting winning bettors with a surcharge to offset costs in high-tax states, DraftKings backtracked Tuesday after the parent company of rival sportsbook FanDuel announced on an earnings call it won’t be doing the same.

“We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers,” DraftKings said in a statement.

The surcharge was slated to begin at the start of 2025, but it was always going to be hard to pull off if rival sportsbooks didn’t follow suit.