Evidently If you live in NY/PA/IL/VT Draft Kings will tax you on your winning bets.

[theriver55]

DK has to pay high taxes on the profits in those states. So to compensate they are passing the buck to the consumer. OTB used to charge a 6% surcharge on horse winning wagers back in the day in NY. Not sure if any other operator will follow the DK lead.

 

[BigJay]

I was wondering about this with @dougtushyterror big hits

 

[jjgold]

It’s been like that for years

 

[Tanko]

This is interesting. I would love to hear how this works. I'm in Texas = no income tax just high taxes on everything else (property, sales, etc...)

If they tax you on the winnings do they report it as winnings for YOU to the state so that when you do taxes you account for it already?
Are they subtracting the losses before the tax?
Is the 6% the equivalent to the state income tax?

So many questions.

 

[jjgold]

If you win enough, you get a 1099

 

[sharpsquare]

This is interesting. I would love to hear how this works. I'm in Texas = no income tax just high taxes on everything else (property, sales, etc...)

If they tax you on the winnings do they report it as winnings for YOU to the state so that when you do taxes you account for it already?
Are they subtracting the losses before the tax?
Is the 6% the equivalent to the state income tax?

So many questions.

some very good questions. so far few answers from DK

 

[theriver55]

It’s been like that for years

Hey GOLD this was your response to my post. Now it looks like you have changed your tune in your thread today on the same topic.

 

[str]

You will have to see if it actually takes effect but if it does, it is no good 55.

 

[Tanko]

If this happens to someone or there is a follow-up article about it where someone had it happen to them, please keep us updated. I could see this becoming a trend across the country with all books in similar states.

 

[jjgold]

Basically, play offshore or Nevada