<p>The online gambling world was sent into a frenzy after <a href="/articles/industry/draftkings-adding-winnings-surcharge-not-worried-about-unhappy-customers/">DraftKings Sportsbook announced a planned tax surcharge to its customers</a>. Even though the tax wasn&#8217;t projected to be astronomical, bettors across the country were less than thrilled about the idea of having to give some of their winnings back.</p>
<p>Fast forward one week and the online betting juggernaut has decided to drop its surcharge plans following a storm of backlash.</p>
<h2>DraftKings Drops Planned Winnings Tax</h2>
<p>On Wednesday, <a href="https://x.com/DraftKingsNews/status/1823480779206480300/photo/1" target="_blank" rel="noopener">DraftKings took to X (<em>formerly Twitter</em>) to announce</a> that they chose not to advance with their controversial gaming tax plans.</p>
<p>&#8220;We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge,&#8221; the statement read. &#8220;We are always committed to delivering the best value in the industry to our loyal customers.&#8221;</p>
<p><img loading="lazy" decoding="async" class="size-large wp-image-54439 aligncenter" src="https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-1024x576.jpg" alt="DraftKings Drops Planned Tax Surcharge Following Customer Backlash " width="1024" height="576" srcset="https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-1024x576.jpg 1024w, https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25-300x169.jpg 300w, https://wp.bettingnews.com/wp-content/uploads/2024/08/image-25.jpg 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></p>
<p>Given the angry comments from users across social media, it&#8217;s far from shocking to see DraftKings walk back on its plans.</p>
<p>DraftKings&#8217; initial plans stemmed from various states implementing game taxes of over 20%. For example, Illinois has recently approved putting a 40% tax rate on gambling companies while places like New York implemented a 51% rate. In other words, the sportsbook was looking to recoup some of that money through its customers.</p>
<p>It&#8217;s scummy yet unsurprising.</p>
<p>DraftKings&#8217; mistake only looked more foolish as time went on. None of the other major sportsbooks followed in their footsteps, which only painted them in a worse light. After all, does anyone want to gamble with a book that&#8217;ll withhold a portion of your winnings?</p>
<p>Didn&#8217;t think so.</p>
<p>On Tuesday, FanDuel Sportsbook — DraftKings&#8217; biggest regulated rival — <a href="https://www.sportsbettingdime.com/news/betting/fanduel-has-no-plans-for-tax-surcharge-but-will-likely-cut-promo-spend/" target="_blank" rel="noopener">announced that it wouldn&#8217;t be pursuing any sort of surcharge</a>. CEO Peter Jackson even described the practice as &#8220;wrong,&#8221; indicating that the last thing he wants to do is leave his customers with a poor experience. Jackson&#8217;s comments likely played a big role in DraftKings walking by their decision as the last thing they want to do is look worse than FanDuel.</p>
<p>Hopefully, online sportsbooks realize that being greedy by taking money from their customers isn&#8217;t the way to go about things. It isn&#8217;t as if they need the money, anyway. <em>ESPN</em> reported earlier this year that <a href="https://www.espn.com/espn/betting/story/_/id/39563784/sports-betting-industry-posts-record-11b-2023-revenue" target="_blank" rel="noopener">American sports betting generated over $11 billion in revenue</a> in 2023 alone.</p>
<h2>Not a Fan of DraftKings? Try BetOnline Today!</h2>
<p><img loading="lazy" decoding="async" class="size-full wp-image-43774 aligncenter" src="https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline.png" alt="DraftKings Drops Planned Tax Surcharge Following Customer Backlash " width="1024" height="500" srcset="https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline.png 1024w, https://wp.bettingnews.com/wp-content/uploads/2024/01/BetOnline-300x146.png 300w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></p>
<p>If you don&#8217;t want to risk being burned by DraftKings or other regulated sportsbooks, consider trying offshore options like BetOnline!</p>
<p>BetOnline <a href="https://affiliates.bettingnews.com/register/betonline/" target="_blank" rel="noopener">has everything you want from a sports betting experience</a>, from a wide variety of markets to juicy odds across a plethora of sports. You also don&#8217;t have to worry about BetOnline (<a href="/best-online-sportsbooks/">and our other partners</a>) having to deal with hefty state taxes which could affect your experience. We&#8217;re all here for the action and cash, not taxes, right?</p>
<p>Additionally, BetOnline offers can&#8217;t-miss promotions that&#8217;ll help increase your winnings. For example, sign up now with BetOnline and your first deposit will be matched 50% up to $1,000 if you use the code &#8216;BET100o!&#8221;</p>
<div class="my-3 card">
	<div class="item-position" style="display: none;"> 1 </div>
	<div class="card-body p-xl-3 d-flex flex-column align-items-xl-center flex-xl-row">
		<div class="mr-xl-4">
			<img decoding="async" class="cta-logo" src="https://fantasydataobj.s3.us-east-2.amazonaws.com/books/betonline-logo-194x62.webp" alt="BetOnline Sportsbook logo" />
			<span><span class="sue-icon font-weight-bold sue-icon-no-url" style="font-size:12px;color:#5C6571;margin:0"><i class="sui sui-star" style="font-size:16px;line-height:16px;background:#fff;color:#FB8500;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> 4.9/5 Review Rating </span></span></span>
		</div>
		<div class="py-3 py-xl-0 flex-fill">
			<span class="badge badge-pill text-center text-xl-left badge-danger text-uppercase px-2 mb-2 font-weight-bold">Bonus & Benefits</span><br />
			<span class="mb-0 ml-2 ml-lg-0 text-dark font-weight-bold">55% Welcome Bonus w/ code BNBOL55</span><br />
			<a class="ml-2 ml-lg-0 align-self-center small font-weight-bold" href="/best-online-sportsbooks/betonline/">See our review »</a>
		</div>
		<div class="bg-light p-2 rounded w-custom border-card">
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> Up to $250 in Free Bets + 100 Spins </span></span></span><br />
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> $10 Cash Bonus w/ Code BNEWS </span></span></span><br />
			<span><span class="sue-icon sue-icon-no-url" style="font-size:14px;color:#1F2933;margin:0"><i class="sui sui-check-circle" style="font-size:16px;line-height:16px;background:#F4F7FC;color:#2FBB9C;border-radius:256px;padding:4px"></i><span class="sue-icon-text"> Fastest Payouts </span></span></span>
		</div>
	</div>
	<div class="card-footer bg-white border-top-0 px-xl-3 pt-0">
		<a class="betonline-cta-review btn btn-lg btn-success btn-block mb-2 stretched-link" style="font-size: .9rem;" role="button" href="https://affiliates.bettingnews.com/register/betonline/" target="_blank" data-event-label="betonline-sportsbook-card" rel="sponsored noopener">Play Now & Claim Bonus »</a>
	</div>
</div>
<p>&nbsp;</p>


DraftKings Drops Planned Tax Surcharge Following Customer Backlash

mBitcasino Launches Festive Winter Village Promotion

North Carolina Sports Betting Surges Past $800M in November

Hannahville Tribe Partners with Hard Rock Bet in Michigan

Missouri Opens Door to Legal Retail and Online Sportsbooks

Alberta iGaming Corporation Projects 2026 Launch

DraftKings Drops Planned Tax Surcharge Following Customer Backlash

Devon Platana

More Industry News

mBitcasino Launches Festive Winter Village Promotion

North Carolina Sports Betting Surges Past $800M in November

Hannahville Tribe Partners with Hard Rock Bet in Michigan

Missouri Opens Door to Legal Retail and Online Sportsbooks

Alberta iGaming Corporation Projects 2026 Launch