DraftKings (NASDAQ:DKNG) caught DKNG stock investors off guard on Friday when the sports betting company announced a new gaming tax surcharge in its latest earnings report.
During that report, DraftKings co-founder and CEO Jason Robins revealed plans to implement a gaming tax surcharge. He said this would be for states with high taxes that already have several mobile sports betting operators.
According to Robins, this gaming tax surcharge won’t go into effect until the start of 2025. He claims it could “drive Adjusted EBITDA upside on an annual basis.”
DKNG Stock: Gaming Tax Surcharge Details
Getting into the details, the new surcharge will affect states with a gambling tax of over 20%. That includes New York, Pennsylvania, Vermont and Illinois. That will require the tax on customers’ winnings.
It’s worth noting that the new gaming tax surcharge was announced after the company reported its first quarter of profits. This happened alongside growing users with 3.1 million unique monthly players in the second quarter. That’s above the 2.6 million it expected. It also announced a $1 billion stock repurchase plan in the earnings report.
DKNG stock is down 7.8% as of Friday afternoon.
Investors will want to stick around for more of the most recent stock market stories!
We have all of the hottest market news ready to go on Friday! A few examples include video game actor strikes, layoffs at Bungie and more. All of this info is ready to go at the links below!
More Stock Market News for Friday
- Video Game Actor Strikes 2024: What to Know as Voice Actors Protest AI
- Sony Layoffs 2024: What to Know About the Latest Job Cuts at Bungie
- INTC Stock Plunges as Intel Suspends Its Dividend. What Is Going On?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
