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DraftKings and Flutter shares fall as Illinois increases sports betting tax

DraftKings fell by as much as 10 percent.

US.- DraftKings And FanDuel owner Flutter Entertainment fell on Tuesday after the Illinois Senate passed a bill that would increase taxes on sports betting. DraftKings lost as much as 10 percent, its biggest drop since August, and Flutter's U.S. shares lost as much as 5.6 percent.

Rush Street Interactive The stock remained unchanged and the shares of Penn Entertainment were down as much as 1.6 percent. Under the proposal, they would pay a lower tax rate than DraftKings based on their current market share.

The Illinois state bill would convert the sports betting tax, which is currently 15 percent, into a new tiered format that up to 40 percent on adjusted gross sales of sports betting companies. The bill, part of Illinois' budget package, has been introduced in the state's House of Representatives.

The Sports Betting Alliance believes that the proposed measures “will cause real damage”. SBA President Jeremy Kudon said: “Instead of heeding the outcry of tens of thousands of citizens who have vocally opposed doubling the sports betting tax, the Illinois Senate tonight introduced a budget bill that would make Illinois' sports betting tax the second highest in the country and counterproductively penalize sports betting operators who have invested millions in the local economy and created jobs in the state.”

Anna Harden

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