DraftKings Q2 Earnings, Buyback, Surcharge Details

DraftKings will implement a gaming surcharge on winning bets in states with sports betting tax rates above 20% starting next year, including Illinois, New York, Pennsylvania, and Vermont, as it seeks to boost profits. This move follows the company's first profitable quarter as a public company, with Q2 revenue reaching $1.1 billion. Despite missing some revenue estimates, DraftKings exceeded EPS expectations with a profit of $0.22 per share. The company raised its full-year revenue guidance to $5.15 billion but lowered its adjusted EBITDA guidance due to increased customer acquisition costs. Additionally, DraftKings authorized a $1 billion share repurchase program. The surcharge is expected to be nominal for customers, with an example given of a $10 bet incurring an additional 30 cents in Illinois.