DraftKings won't pass on additional taxes to winning wagers

DraftKings was not willing to bet on a surcharge for successful wagers, abandoning a plan to put an extra fee on winning customers who reside in states with higher taxes.

DraftKings' decision follows a similar one made by competitor FanDuel, which also elected to not pass on higher fees required of the betting companies from states like Illinois, New York, Pennsylvania and Vermont.

The additional fees that would have been passed on to the consumer were considered to be nominal but will no longer happen now. ESPN Bet also said it would not pass on fees to customers from states with higher taxes.

Sports wagering companies like DraftKings and FanDuel had been offering financial incentives to lure new customers, but indications are that those perks would be reduced in the near future.

Advertising campaigns also could be reduced, even as the high-stakes football season approaches.

--Field Level Media