Rush Street Interactive
- Rush Street Interactive has pledged it will not institute a tax surcharge on winning sports bets
- The announcement comes three days after DraftKings announced a new tax surcharge on winning bets across four states beginning 2025
- All eyes turn to ESPN BET and FanDuel to see if a similar plan will be implemented
Rush Street Interactive to its sports betting customers…read our lips, no new tax surcharges.
BetRivers became the first operator to publicly declare it will not be implementing a tax surcharge on winning sports bets, just four days after DraftKings revealed its new plan to do so across four states in 2025.
But with two sports betting companies Q2 reports looming large this month, will anyone else publicly oppose the plan or announce intentions to implement one of their own?
First Operator to Call out DraftKings
The sports betting giant last week announced it would be implementing a “gaming tax surcharge” on winning bets in New York, Illinois, Vermont, and Pennsylvania, as a tool to keep it its tax rates around 20% in the jurisdictions.
The surcharge will be implemented in “high tax online sports betting states that have multiple operators (Illinois, New York, Pennsylvania, and Vermont) to ensure an operational effective tax rate of approximately 20%,” according to the company’s Q2 earnings report.
Rush Street Interactive, with its BetRivers brand, announced today it has no plans of instituting such a strategy. BetRivers is live in New York, Pennsylvania, and Illinois, three of the four states DraftKings will introduce its new tax surcharge.
“As we put our customers first, it was an easy decision for us,” Richard Schwartz, CEO of RSI, said in the release.
Rush Street Interactive became the first gaming company to publicly call out the new DraftKings plan. However, several others may have also tipped their hands when it comes to instituting a tax surcharge of their own.
Neither BetMGM or Caesars mentioned plans during their recent earnings calls for a tax surcharge. Does this mean they have no plans to do so? Not necessarily, but if such a plan was being considered it likely would be been discussed during the reports.
All Eyes on FanDuel, ESPN BET
So with Rush Street Interactive publicly opposing the plan, sports betting customers now turn their attention to two major players in the industry to see if they have any tax surcharge propositions of their own.
FanDuel, which has roughly a similar U.S. market share as DraftKings of 33%, will host its Q2 earnings report on Tuesday, Aug. 13. If it has any plans for a tax surcharge of its own on winning bets, it will likely be introduced to the public during the earnings report.
PENN Entertainment, which has partnered with ESPN to offer ESPN BET throughout the U.S., will also host a Q2 earnings report on Thursday, Aug. 8.
It will be interesting to see if either of these operators intend to mirror DraftKings, or deviate from the operator’s plan. Will they view this as an opportunity to capture a portion of DraftKings’ customer base that will be fed up with paying tax surcharges, or will they join forces with the operator and institute new fees of their own?
We’ll have our answers soon enough.
Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.
BetRivers, a popular online sports betting platform, has recently made headlines for its decision to not implement a tax surcharge on winning sports bets. This decision has sparked a debate among bettors and industry experts alike, with some praising the platform for standing up against additional fees, while others question the potential impact on their bottom line.
The controversy began when rumors started circulating that BetRivers was considering adding a tax surcharge to winning sports bets in order to offset the costs of operating in certain states with high tax rates. This news was met with backlash from many users who felt that they were already paying enough in taxes on their winnings and should not be subjected to additional fees.
In response to the outcry, BetRivers released a statement explaining their decision to not implement the tax surcharge. The platform cited their commitment to providing a fair and transparent betting experience for their users as the primary reason for their stance. They also emphasized that they believe in honoring the odds and payouts that are advertised to their customers without any hidden fees or surcharges.
While some users have applauded BetRivers for taking a stand against the tax surcharge, others are concerned about the potential financial implications for the platform. With high tax rates in certain states cutting into their profits, some worry that BetRivers may have to make cuts elsewhere in order to remain competitive in the market.
Despite the controversy, BetRivers remains steadfast in their decision to not implement a tax surcharge on winning sports bets. They have reassured their users that they will continue to provide a fair and transparent betting experience, and that they are committed to upholding the integrity of their platform.
In conclusion, BetRivers’ refusal to implement a tax surcharge on winning sports bets has sparked a debate within the industry. While some users applaud their commitment to transparency and fairness, others are concerned about the potential financial impact on the platform. Only time will tell how this decision will ultimately affect BetRivers and its users.
