DraftKings Falls as Illinois Nears Sports Betting Tax Hike
- Shares of FanDuel-owner Flutter Entertainment were also lower
- Needham said investors have focused on higher rate for months
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DraftKings Inc. and FanDuel-owner Flutter Entertainment Plc fell on Tuesday after the Illinois Senate passed legislation that would raise taxes on sports betting.
The bills would make the sports gambling tax, which is currently 15%, to a new graduated format that would be as high as 40% on the adjusted gross revenue of sports gaming companies. The legislation, part of the Illinois budget package, heads to the state’s House.