Latest news with #FanDuel-owner
UPI
4 days ago
- Business
- UPI
FanDuel adds 50-cent sports betting surcharge in Illinois
Sports betting site FanDuel will levy a 50-cent-per-wager surcharge on sports bets made in Illinois to offset a state per-bet tax, company officials announced on Tuesday. File Photo by John Angelillo/UPI | License Photo June 10 (UPI) -- Sports betting service FanDuel has added a 50-cent surcharge to all wagers laid in Illinois to offset the state's per-wager tax of up to 50 cents per bet. The surcharge transfers the tax to FanDuel's customers and remains in effect for as long as Illinois continues to levy the per-wager tax. "Should the state reverse its decision at any point in the future, FanDuel will immediately remove the $0.50 transaction fee," officials at FanDuel-owner Flutter Entertainment said in a press release. The Illinois tax will disproportionately affect bettors who lay small wagers, Flutter Chief Executive Officer Peter Jackson said in a prepared statement. "There is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize revenue for states over time," Jackson said. "We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state," he added. Instead of paying a 50-cent surcharge on a $5 wager, Flutter said many customers will switch to offshore betting sites that aren't subject to the Illinois tax. DraftKings is another popular sports betting site that is considering charging its Illinois customers to offset the state tax. "DraftKings anticipates taking action and expects to share more information soon," a DraftKings spokesperson told CNBC. About three-fourths of Illinois sports betting wagers are made through FanDuel and DraftKings. Illinois sports books paid about $276 million in state taxes in 2024, according to an LSR analysis. FanDuel paid $74 million and DraftKings $67.9 million in state taxes on their combined total of more than 150 million bets. Illinois' new per-wager tax charges 25 cents per bet on the first 20 million wagers each online sports book accepts, followed by 50 cents per wager on additional bets. The transactional tax could cost FanDuel $86 million and DraftKings $79 million in 2026, Citizens gaming analyst Jordan Bender told CNBC. The per-bet tax is in addition to Illinois levying between 20% and 40% on sports book profits after raising the tax from 15% last year.
RTÉ News
08-05-2025
- Business
- RTÉ News
Flutter cuts US profit forecast on gamblers' winning streak
Paddy Power and FanDuel-owner Flutter Entertainment has cut its forecast for full-year US profit growth, after a winning streak for gamblers dented earnings at the world's largest online betting company for the second quarter in a row. Bookmakers tend to suffer when favourites win, and Flutter expects US core profit to be $180m lower this year at $1.13 billion due to an unprecedented run of bettor-friendly results during the March Madness college basketball tournament. That would still represent 123% year-on-year growth at the rapidly growing and market-leading FanDuel. Flutter nudged up its group-wide profit forecast to $3.18 billion from $3.16 billion in March after a $100m positive foreign currency impact and a $120m acquisition contribution not included previously. Flutter's first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $616m, up 20% year-on-year, were below the $658m expected by an average of 13 analysts with LSEG SmartEstimate. It was the second quarter in a row that a series of unlikely customer-friendly sports results impacted earnings following a similarly high rate of NFL favourites winning late last year. However, Flutter said sporting outcomes and, as a result, its own gross revenue margins would align to expected outcomes over time. It used the example of previous swings in Premier League soccer results. CEO Peter Jackson reiterated that he expects gamblers in the US to be resilient in the face of a recent sharp fall in consumer confidence, pointing to the lack of discernible impact in its older Paddy Power, Betfair and Sportsbet brands in Britain and Australia to previous downturns and inflation shocks. "We're not (seeing any impact)," Jackson told Reuters in an interview. "Of course we're mindful of the macro challenges but we remain confident in our business and convictions based on the experience that we've seen in the industry in the past and the defensive characteristics of it," he added.
