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DraftKings Drops Plans to Add Surcharge in High-Tax States

The DraftKings logo on a smartphone arranged in Hastings-on-Hudson, New York, US, on Monday, July 31, 2023. DraftKings Inc. is scheduled to release earnings figures on August 3. Photographer: Tiffany Hagler-Geard/Bloomberg (Tiffany Hagler-Geard/Bloomberg)

(Bloomberg) -- DraftKings Inc., the online betting company, rescinded plans to introduce a surcharge on bettors in high-tax states.

In a statement posted Tuesday on the social media site X, the company said it based the decision on feedback from customers. 

The announcement came after Bloomberg first reported that Flutter Entertainment Plc, the parent of rival FanDuel, won’t pursue a similar surcharge.

DraftKings announced the surcharge plans earlier this month, saying it would be a way to recoup larger-than-average levies in states such as New York and Illinois.

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