DraftKings has decided to scrap its plan to impose a 'gaming tax surcharge' on winning bets in high-tax states starting January 2025, following significant public backlash and lack of support from competitors. The surcharge was intended to offset high tax rates in states like New York, Pennsylvania, Vermont, and Illinois, but faced criticism from customers and competitors alike. FanDuel, one of DraftKings' major competitors, and other sportsbooks, announced they would not implement similar surcharges. DraftKings' CEO Jason Robins had initially believed that other companies would follow suit, but as opposition grew, the company reversed its decision. The move was seen as a gamble that did not pay off and could have resulted in a loss of market share had it gone ahead. This incident highlights the competitive pressure in the sports betting market as operators navigate high tax implications.