Rush Street Interactive Says No to Bet Surcharge
No BetRivers Winning Bet Surcharge? Here's What it Means.
Score one for Rush Street Interactive. In a move that will surely appease its customers, BetRivers says it has no plans to implement a tax surcharge on winning sports bets.
This comes just days after DraftKings revealed new intentions to do so across four U.S. states beginning in 2025.
The industry leader’s “gaming tax surcharge” will initially affect bettors in New York, Illinois, Pennsylvania and Vermont as a means to keep its tax rates around 20%.
BetRivers — which is live in three of those four states except for Vermont – is taking the opposite approach.
“As we put our customers first, it was an easy decision for us,” Richard Schwartz, CEO of Rush Street Interactive, said in a release.
Here’s what no BetRivers winning bet surcharge means for customers.
DraftKings Q2 Earnings Massive
Rush Street Interactive is the first gaming company to publicly respond to DraftKings’ plans. Other operators surely will soon follow suit, though their specific intentions remain unclear.
DraftKings’ announcement comes on the heels of its second-quarter earnings report, which saw $1.1 billion in revenue. The surcharge focuses on states with multiple betting operators and where the tax rate is also above 20%.
“We decided that the best course of action is to do what really every other industry (does) — whether it’s hotels, taxis — whatever else you buy generally has some kind of tax.” DraftKings CEO and co-founder Jason Robins told CNBC.
DraftKings’ revenue marked a 26% increase from $874.9 million in 2023. The company attributed that growth to favorable customer engagement, expansion into new betting jurisdictions and more.
The operators’ online reach now extends to 25 U.S. states and Washington, D.C. It also offers iGaming in five states and online casino play in four.
By comparison, Rush Street Interactive’s second-quarter group revenue was $220.4 million, an increase of 33.5%. A majority of those earnings, of course, came in North America.
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Will Anyone Follow DraftKings’ Lead?
From a PR standpoint, no BetRivers winning bet surcharge is a big win. Will others follow suit?
With DraftKings having made its intentions clear, the focus now shifts to the betting giant’s biggest competitors. FanDuel, which has a similar market share at 33% – has not said which direction it’s leaning. With its second-quarter earnings report due on Aug. 13, bettors should know sooner than later. The same goes for PENN Entertainment, which owns ESPN BET.
While the surcharge promises to benefit DraftKings from a financial standpoint, it could potentially turn off its most price-sensitive customers by taxing winning sports wagers. As it is, many of them won’t be lacking for other options.
Sports betting is now expansive enough — legalized in 38 states plus Washington, D.C. — that users in all states have several operators from which to choose.
Pennsylvania, for example, has 10 different operators, including eight of the country’s nine highest-grossing sportsbooks.
Stay tuned for more updates on what no BetRivers winning bet surcharge could mean for the industry.
For Gambling news, odds analysis, and more, visit Point Spreads Sports Magazine.
