DraftKings Profitable; New Surcharge Criticized

DraftKings reported its first-ever profitable quarter with $64 million in profit, driven by reduced marketing expenditures and over $1 billion in quarterly revenue. To offset high state taxes, DraftKings will introduce a 'gaming tax surcharge' on winning bets in states like New York, Pennsylvania, Vermont, and Illinois starting in 2025. This move has drawn criticism from competitors like Rush Street Interactive, which announced it would not implement such fees, emphasizing customer satisfaction. RSI's strategy aims to differentiate itself in a competitive market, especially given its recent accolades for customer service excellence. Despite concerns, DraftKings CEO Jason Robins believes the surcharge won't significantly alter customer behavior. The differing approaches of the two companies may influence consumer perceptions and market dynamics moving forward.