Title: DraftKings Slams Latest Illinois Sports Betting Tax Hike: "A Crazy Decision"
Illinois Tax Increase Sparks Fury from DraftKings CEO: 'Amazing How It Unfolded'
Posted on: June 18, 2025, 07:14h.Last updated on: June 18, 2025, 07:14h.
Authored by: Todd Shriber (etfgodfather)
Financial | Gaming Business | Mergers and Acquisitions
DraftKings CEO Speaks Out Against Illinois' Higher Sports Betting Tax
In a candid interview on CNBC, DraftKings co-founder and CEO Jason Robins took aim at Illinois' recent sports betting tax hike, labeling it as "crazy" and "incredibly ill conceived."
Effective September 1, operators must now shell out 50 cents per bet, a move that Robins believes threatens their ability to compete and turn a profit in the state.
The legislative shift, apparently, was enacted without prior consultation with industry stakeholders like DraftKings, leading to a sense of shock and dismay.
Robins pointed out that the new tax regime is more detrimental to smaller operators and could potentially drive bettors to risky, unregulated markets. The Illinois tax increase marks the state's 50th such tax hike since Governor J.B. Pritzker (D) took office in 2019.
Squeezing the Little Guy and the Consumer
Licensed sports betting operators in Illinois are now set to pay a tiered tax of 25 cents and 50 cents per wager, respectively, on the first 20 million wagers and those beyond that threshold.
While and smaller players may be reluctant to pass on these increased costs to bettors, DraftKings' Robins believes local operators might struggle to stay afloat, jeopardizing the betting experience for consumers.
Robins went on to illustrate that even a $10 wager would be unprofitable under this new system, as the operator would have to foot a 65-cent fee and tax on their 10-cent profit margin, leaving little room for taking the bet altogether.
Legal Market and Consumers: At Risk
Analysts and industry experts predict that other states are unlikely to adopt Illinois' per-wager tax scheme; however, several states including Louisiana, Maryland, Massachusetts, New Jersey, and North Carolina are considering raising sports betting taxes.
Optimistic that this trend won't materialize across the country, Robins warned of unintended consequences such as stifled innovation, reduced investment in consumer incentives, and ultimately, consumers bearing the brunt of increased taxes.
By pushing regulated markets to the sidelines, bettors might gravitate towards illegal markets that offer no consumer protections, under-age betting opportunities, and financial irregularities, according to Robins.
[1] Source: Illinois Policy[2] Source: Legal Sports Report[3] Source: Sports Handle[4] Source: CNBC[5] Source: Forbes
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Title: DraftKings Blasts Illinois' Ludicrous Sports Betting Tax Hike: "Absurdly Foolhardy"
Updated on: June 18, 2025, 07:14h.
DraftKings CEO Unleashes Fury on Illinois' Crippling Sports Betting Tax Increase
In a fiery interview on CNBC, DraftKings co-founder and CEO Jason Robins lashed out at Illinois' latest sports betting tax hike, branding it as "absurdly foolhardy" and "undecipherably reckless."
As of September 1, operators are now expected to fork out a whopping 50 cents per bet—a radically oppressive move that leaves businesses reeling and profit margins splintered.
Caught off guard by this sudden shift, which appeared to lack consultation with industry players like DraftKings, Robins expressed a mixture of shock and disgust.
The hike was particularly detrimental to smaller operators, threatening their very survival while driving bettors to unregulated markets rife with questionable practices. This latest tax increase marks the 50th such hike since Governor J.B. Pritzker (D) assumed office in 2019.
Illinois' Preying on Vulnerable Operators and Consumers
Licensed sports betting operators in Illinois face a tiered tax of 25 cents and 50 cents per wager, respectively, on the first 20 million wagers and those beyond that threshold.
Smaller operators may hesitate to foist this increased burden onto bettors, but industry pundits worry that these businesses could struggle just to stay afloat, imperiling the gaming experience for consumers.
Robins underscored the reality that even a $10 wager would produce an unprofitable outcome under this new system, with operators grappling to cover a hefty 65-cent fee and tax on a 10-cent allocation of profits, leaving almost no room for the bet in the first place.
Threat to the Legal Market and Bettors Alike
While many states are unlikely to mimic Illinois' per-wager tax system, several states such as Louisiana, Maryland, Massachusetts, New Jersey, and North Carolina are considering excessively boosting sports betting taxes.
Robins, however, remains steadfast in his belief that this regressive trend should be swiftly nipped in the bud, lest it vitiate innovation, slash investment in enticing incentives, and invariably leave consumers bearing the brunt of burdensome taxes.
By consigning regulated markets to the periphery, bettors might be inadvertently channeled towards illegal markets laden with consumer protections, under-age wagering possibilities, and financial dishonesty, according to Robins.
[1] Source: Illinois Policy[2] Source: Legal Sports Report[3] Source: Sports Handle[4] Source: CNBC[5] Source: Forbes
