States bet on boosting taxes for online sports betting companies like DraftKings, FanDuel
States are looking to increase their take from the $16 billion online sports gambling industry as it expands across the country with big partnerships
NEW YORK (AP) — States are looking to increase their take from the $16 billion online sports gambling industry as it expands across the country with big partnerships.
DraftKings, FanDuel and other betting apps are facing a bigger tax hit in Illinois following changes to tax policy this year. New Jersey, Massachusetts and other states have also tried to raise taxes on the industry or plan to.
DraftKings and FanDuel count Major League Baseball and the National Football League among their biggest partnerships. ESPN owner Walt Disney Co. has also gotten involved in the action with ESPN Bet, which has a partnership with the National Hockey League. Established casino operators like MGM Resorts and Penn Entertainment have also expanded into online sports gambling.
All sports wagering revenue in the U.S. jumped 22% to $3.33 billion in the first quarter of 2024, according to the American Gaming Association. The industry's growth has piqued the interest of state governments.
