DraftKings and Flutter Stocks Plummet Amid Illinois Gambling Tax Hike

Illinois Senate's approval of a new budget introduces a progressive tax rate, significantly impacting major sports betting operators.

DraftKings and Flutter Entertainment stocks dropped sharply following the proposed tax hike.
The new tax rate will range from 20% to 40%, up from the current 15%, affecting operators based on their revenue.
DraftKings saw a 10% decline, while Flutter Entertainment's shares fell by 7.7%.
Analysts remain optimistic about long-term growth despite immediate stock declines.
The tax hike aims to fund problem-gambling services amid the industry's rapid growth.