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DraftKings Inc. (NASDAQ:DKNG) shares are trading lower Thursday. As states grapple with the taxation of sports betting, DraftKings has made a strategic move by acquiring digital lottery app Jackpocket.
What To Know: DraftKings shares appear to be experiencing weakness in recent sessions as debates over taxation in the sports betting industry intensify. DraftKings stock is down more than 10% over the last week.
New York has a sky-high 51% tax rate on sportsbook revenue, which has allowed it to collect revenues of approximately $1.9 billion over the last three years, prompting envy and emulation from other states, according to The Washington Post.
Legislators in Illinois and New Jersey are reportedly considering proposals to double taxes on sportsbooks, citing the industry’s explosive growth and concerns about increased problem-gambling service needs. Ohio became the first state to double sportsbook taxes last year. The report indicates that current sportsbook tax rates range from 6.75% in Iowa to 51% in New York and New Hampshire.
What Else: DraftKings announced the completion of its previously announced proposed acquisition of Jackpocket on Thursday.
Co-founder and CEO Jason Robins expressed enthusiasm about the acquisition, highlighting plans for cross-selling initiatives and improvements in customer acquisition strategies. The integration of Jackpocket into DraftKings’ ecosystem aims to drive growth and innovation in the digital lottery vertical, aligning with DraftKings’ mission to provide engaging real-money gaming experiences.
“We are well-prepared to quickly launch cross-sell programs, further improve customer acquisition efficiency, and continue to innovate and differentiate with our overall product portfolio for our customers. We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem,” Robins said.
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DKNG Price Action: DraftKings shares were down 3.44% at $40.48 at the time of writing, according to Benzinga Pro.
Image: courtesy of DraftKings.
Posted In: DKNG
