Following the announcement projecting an increase in tax burdens, the value of companies operating in the state plummeted dramatically.
United States.- Late on the night of Sunday, May 26, senators from the State of Illinois approved the 2025 budget that includes a rise in the tax on sports betting which would make the state the second most expensive state for operating companies.
If approved, operators with the highest adjusted gross income would have to pay a tax of 40 percent, and even smaller operators would need to pay 20 percent more. The current rule sets a tax of 15 percent that came into effect when sports betting began operating in June 2021.
This situation, which still needs to be endorsed and formalized after parliamentary treatment, has already begun to show the first alerts affecting the finances and values of the companies operating in Illinois.
Following the announcement of the tax increase, shares of Flutter Entertainment, owner of FanDuel, dropped in value by 7.7 percent, reaching a cost of USD 188.33.
Meanwhile, DraftKings also experienced a downward trend in its stock market operation as it closed on Tuesday, May 28, at a value of USD 36.61 per share. This figure is 10.2 percent lower than that of Friday afternoon, demonstrating the impact of the tax increase announcement on the finances of the companies.
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According to the project included in the state budget for 2025, it is anticipated that all companies that earn adjusted gross revenues of USD 30m per year will pay taxes at 20 percent, while those reporting more than USD 200m per year will pay a tax rate of 40 percent.
