DraftKings CEO clashes with Illinois betting regulation

DraftKings, one of the leading betting operators in the United States, has clashed with Illinois regulations that aim to curb problem gambling.

Illinois has imposed a new per-bet tax on both FanDuel and rival DraftKings, which amounts to 25 cents for the first 20 million bets and 50 cents for all subsequent bets.

We covered this development in Land of Lincoln and the plans to introduce the tax in September 2025, but the CEO of DraftKings has been reactionary. Jason Robins is publicly critical of a move that could harm gamblers rather than help them.

Robins took part in a candid interview with CNBC, which dissected the problems with the Illinois betting regulations and said they could even drive bettors to illegal routes.

The CEO said, “All it’s (September’s legislation) going to do is drive people to the illegal market or drive people to bet more. It just makes no sense and it was done in the dead of night. We had no warning, actually met with legislative leaders in the weeks before the budget was released, and they made no mention of this.”

Robins challenged how the regulations have been applied and the effect they will have on the consumer, saying that it will force the average bettor to gamble in higher volume or depend on illegal routes.

He also added that the cost of doing business in Illinois might be too rich for the blood of the betting company, or the charges imposed may have to fall on gamblers themselves.

“Say somebody wants to make a bet of $1. The actual profit margin on that bet is probably about 10 cents. You’re getting charged 50 cents plus a tax on the 10 cents. The math doesn’t really work. You have to pass some of that along to the consumer. Otherwise, you can’t take that bet no matter what your size and scale is.”

Robins commented that he would be supportive of the tax being revised, and if it was scrapped, then he could see a brighter future for DraftKings in the state.

Featured image: CNBC Official.

The post DraftKings CEO clashes with Illinois betting regulation appeared first on ReadWrite.