DraftKings Backs Down After Outrage In New York State

Since becoming legal in 2022, mobile sports betting has become extremely popular here in New York State. These days, you can rarely hit up a sports bar or watch a game with friends without someone checking their phone to see how their bets are doing. 

That’s why when one of the most popular betting apps around announced they would be charging New Yorkers a fee if they win, it did not go over well. 

READ MORE: DraftKings Faces Backlash For Charging More In New York State

Recently, DraftKings revealed plans to introduce a new “surcharge fee” on winning bets placed in New York, beginning this January. The reasoning behind the fee was that it was necessary in order to offset New York State’s 51% tax rate.

DraftKings CEO Jason Robins said the goal of the fees is to improve profits in the company, adding that other sports betting companies like Caesars Sportsbook and FanDuel will likely impose similar fees to users in the future.

His comments quickly backfired, and sports fans were immediately outraged. Social media was flooded with posts blasting the betting app, with groups like Fantasy Advocates for New York Sports calling the plan “shameful.”. 

Betting Apps Announce They Won’t Charge Fees In New York State

Instead of adopting the idea of charging fees to New York users, like DraftKings’s CEO predicted, their competition declared the opposite. 

Last week, ESPN Bet said that it would not implement a surcharge anytime soon. And when the CEO of DraftKings’ arguably biggest competition, FanDuel, declared in an earnings call on Tuesday that they wouldn’t be charging fees either, DraftKings began to backtrack. 

DraftKings Backs Off On Charging Fees To New York Users

Hours after FanDuel declared they would not charge fees, DraftKings pulled back on their plans, stating:

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“We always listen to our customers, and after hearing their feedback, we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers.”