DraftKings stocks blitzed by Illinois tax hike

Finance News

Shares of fantasy sports and betting company DraftKings fell 14% as betting stocks took a hit after the Illinois State Senate passed a bill proposing higher taxes on online sports betting operations.

The new proposal suggests taxes paid by betting operators will increase starting on July 1, 2024 with the rate varying from 20% to 40% depending on the company’s annual revenue.

DraftKings is up 7.5% since the beginning of the year, but at $36.20 per share it is still trading 25.6% below its 52-week high of $48.68 from March 2024.