<p>The online gambling world was sent into a frenzy after <a href="/articles/industry/draftkings-adding-winnings-surcharge-not-worried-about-unhappy-customers/">DraftKings Sportsbook announced a planned tax surcharge to its customers</a>. Even though the tax wasn&#8217;t projected to be astronomical, bettors across the country were less than thrilled about the idea of having to give some of their winnings back.</p>
<p>Fast forward one week and the online betting juggernaut has decided to drop its surcharge plans following a storm of backlash.</p>
<h2>DraftKings Drops Planned Winnings Tax</h2>
<p>On Wednesday, <a href="https://x.com/DraftKingsNews/status/1823480779206480300/photo/1" target="_blank" rel="noopener">DraftKings took to X (<em>formerly Twitter</em>) to announce</a> that they chose not to advance with their controversial gaming tax plans.</p>
<p>&#8220;We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge,&#8221; the statement read. &#8220;We are always committed to delivering the best value in the industry to our loyal customers.&#8221;</p>
<p><img loading="lazy" decoding="async" class="size-large wp-image-54439 aligncenter" src="https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-1024x576.jpg" alt="DraftKings Drops Planned Tax Surcharge Following Customer Backlash " width="1024" height="576" srcset="https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-1024x576.jpg 1024w, https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-300x169.jpg 300w, https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25.jpg 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></p>
<p>Given the angry comments from users across social media, it&#8217;s far from shocking to see DraftKings walk back on its plans.</p>
<p>DraftKings&#8217; initial plans stemmed from various states implementing game taxes of over 20%. For example, Illinois has recently approved putting a 40% tax rate on gambling companies while places like New York implemented a 51% rate. In other words, the sportsbook was looking to recoup some of that money through its customers.</p>
<p>It&#8217;s scummy yet unsurprising.</p>
<p>DraftKings&#8217; mistake only looked more foolish as time went on. None of the other major sportsbooks followed in their footsteps, which only painted them in a worse light. After all, does anyone want to gamble with a book that&#8217;ll withhold a portion of your winnings?</p>
<p>Didn&#8217;t think so.</p>
<p>On Tuesday, FanDuel Sportsbook — DraftKings&#8217; biggest regulated rival — <a href="https://www.sportsbettingdime.com/news/betting/fanduel-has-no-plans-for-tax-surcharge-but-will-likely-cut-promo-spend/" target="_blank" rel="noopener">announced that it wouldn&#8217;t be pursuing any sort of surcharge</a>. CEO Peter Jackson even described the practice as &#8220;wrong,&#8221; indicating that the last thing he wants to do is leave his customers with a poor experience. Jackson&#8217;s comments likely played a big role in DraftKings walking by their decision as the last thing they want to do is look worse than FanDuel.</p>
<p>Hopefully, online sportsbooks realize that being greedy by taking money from their customers isn&#8217;t the way to go about things. It isn&#8217;t as if they need the money, anyway. <em>ESPN</em> reported earlier this year that <a href="https://www.espn.com/espn/betting/story/_/id/39563784/sports-betting-industry-posts-record-11b-2023-revenue" target="_blank" rel="noopener">American sports betting generated over $11 billion in revenue</a> in 2023 alone.</p>
<h2>Not a Fan of DraftKings? Try BetOnline Today!</h2>
<p><img loading="lazy" decoding="async" class="size-full wp-image-43774 aligncenter" src="https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline.png" alt="DraftKings Drops Planned Tax Surcharge Following Customer Backlash " width="1024" height="500" srcset="https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline.png 1024w, https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline-300x146.png 300w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></p>
<p>If you don&#8217;t want to risk being burned by DraftKings or other regulated sportsbooks, consider trying offshore options like BetOnline!</p>
<p>BetOnline <a href="https://affiliates.bettingnews.com/register/betonline/" target="_blank" rel="noopener">has everything you want from a sports betting experience</a>, from a wide variety of markets to juicy odds across a plethora of sports. You also don&#8217;t have to worry about BetOnline (<a href="/best-online-sportsbooks/">and our other partners</a>) having to deal with hefty state taxes which could affect your experience. We&#8217;re all here for the action and cash, not taxes, right?</p>
<p>Additionally, BetOnline offers can&#8217;t-miss promotions that&#8217;ll help increase your winnings. For example, sign up now with BetOnline and your first deposit will be matched 50% up to $1,000 if you use the code &#8216;BET100o!&#8221;</p>
<div class="my-3 card">
	<div class="item-position" style="display: none;"> 2 </div>
	<div class="card-body p-xl-3 d-flex flex-column align-items-xl-center flex-xl-row">
		<div class="mr-xl-4">
			<img decoding="async" class="cta-logo" src="https://fantasydataobj.s3.us-east-2.amazonaws.com/books/betonline-logo-194x62.webp" alt="BetOnline Sportsbook logo" />
			<span><span class="sue-icon font-weight-bold sue-icon-no-url" style="font-size:12px;color:#5C6571;margin:0"><i class="sui sui-star" style="font-size:16px;line-height:16px;background:#fff;color:#FB8500;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> 4.8/5 Review Rating </span></span></span>
		</div>
		<div class="py-3 py-xl-0 flex-fill">
			<span class="badge badge-pill text-center text-xl-left badge-danger text-uppercase px-2 mb-2 font-weight-bold">Bonus & Benefits</span><br />
			<span class="mb-0 ml-2 ml-lg-0 text-dark font-weight-bold">55% Welcome Bonus w/ code BNBOL55</span><br />
			<a class="ml-2 ml-lg-0 align-self-center small font-weight-bold" href="/best-online-sportsbooks/betonline/">See our review »</a>
		</div>
		<div class="bg-light p-2 rounded w-custom border-card">
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> Up to $250 in Free Bets + 100 Spins </span></span></span><br />
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> $10 Cash Bonus w/ Code BNEWS </span></span></span><br />
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> Fastest Payouts </span></span></span>
		</div>
	</div>
	<div class="card-footer bg-white border-top-0 px-xl-3 pt-0">
		<a class="betonline-cta-review btn btn-lg btn-success btn-block mb-2 stretched-link" style="font-size: .9rem;" role="button" href="https://affiliates.bettingnews.com/register/betonline/" target="_blank" data-event-label="betonline-sportsbook-card" rel="sponsored noopener">Play Now & Claim Bonus »</a>
	</div>
</div>
<p>&nbsp;</p>


DraftKings Drops Planned Tax Surcharge Following Customer Backlash

OLG FY 2024-25 Report Highlights Ontario Gambling Growth

HR 450 Fails: Georgia Sports Betting Delayed Until 2029

Missouri HB 3533 Targets Sports Betting Tax Loopholes

Kentucky HB 904: New Ban on College Prop Bets & More

Minnesota Introduces SF 4139 to Legalize Online Betting

DraftKings Drops Planned Tax Surcharge Following Customer Backlash

Devon Platana

More Industry News

OLG FY 2024-25 Report Highlights Ontario Gambling Growth

HR 450 Fails: Georgia Sports Betting Delayed Until 2029

Missouri HB 3533 Targets Sports Betting Tax Loopholes

Kentucky HB 904: New Ban on College Prop Bets & More

Minnesota Introduces SF 4139 to Legalize Online Betting