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Form 8-K · Current Report · Filed 2025-06-12

DraftKings Introduces Transaction Fee in Illinois Due to Tax Hikes

On June 12, 2025, DraftKings Inc. announced a 50-cent transaction fee on all mobile and online bets in Illinois, effective September 1, 2025, in response to recent tax increases on sports wagering by the Illinois state legislature. This decision reflects DraftKings' concerns about the impact of the tax hikes on the legal, regulated industry and the potential growth of the illegal industry. The fee will be removed if the legislation is repealed.

Filer
DraftKings Inc. DKNG · NASDAQ
Filed
Accession
0001104659-25-058959
CIK
0001883685
Signal
Low impactConsumer Cyclical

Items reported

Item 7.01

Regulation FD Disclosure

Press Release Furnished
Item 9.01

Financial Statements and Exhibits

Exhibits Furnished

Market reaction

Close before filing

$37.88

Next session

-3.6%

Since filing

-38.0%

Latest close

$23.48

What happened, not what will happen — closing prices around the filing date.

Precedent

Previous filings from DKNG reporting the same item, with the next session's move:

Exhibits (1)

About DraftKings Inc.

DraftKings Inc. is a digital sports entertainment and gaming company offering a range of services, including daily fantasy sports, sports betting, and iGaming. The company operates as a multi-channel provider, enabling sports enthusiasts and gamers to engage in digital contests, wager on a variety of sports events, and enjoy casino-style gaming in regulated markets. DraftKings serves a wide audience, from casual sports fans to avid gamblers, providing a platform that combines innovative technology with a seamless user experience. One of DraftKings' primary functions is to facilitate daily and weekly fantasy sports competitions where users build virtual teams from professional athletes and compete based on the real-life performance of those athletes. Additionally, the company's sportsbook and online casino offerings make it a significant player in the rapidly expanding online gambling industry. DraftKings holds a strategic position in the sports entertainment sector due to its robust tech-driven solutions and expansive market reach, leveraging partnerships with sports leagues, teams, and media companies to continually enhance its product offerings and grow its user base.

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