DraftKings: Illinois Sets A Tax Precedent, Ohio Threatens To Redefine The Rules
Summary
- Illinois’ latest per wager tax could present a 3.5% to DraftKings’ adjusted EBITDA guidance.
- The Illinois tax sets a precedent at a time where Louisiana, New Jersey, North Carolina, and Ohio are exploring tax hikes on sportsbooks.
- An Ohio proposal to impose a handle tax could be another devastating precedent-setting tax approach that could lead to an effective tax rate of 51% on sportsbooks.
- I’m downgrading DraftKings to a hold due to the current uncertain tax environment.
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