Under the approved legislation, Illinois could become the second most expensive state to operate sports betting, with higher adjusted gross revenue companies subject to a 40% tax.
Under the new tax scheme, companies like DraftKings would face higher rates, with the company potentially subject to a 20% tax on its retail adjusted gross revenue and 40% on its digital adjusted gross revenue. This represents a substantial increase from the current rate of 15%.
Financial analysts have expressed concerns about the long-term impact of these higher rates on investors. DraftKings, in response, has already indicated that it may reduce marketing spending if taxes increase, in an attempt to mitigate the negative effects on its bottom line.
DraftKings is also traded on B3 - Brasil, Bolsa, Balcão (formerly BM&FBOVESPA), a stock exchange located in São Paulo, Brazil.
Source: GMB
