San Francisco Giants v Chicago Cubs (Draftkings)

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DraftKings and Flutter dip after Illinois unveils surprise tax hike targeting top sportsbooks

A new wagering fee could push effective tax rates above 50% for the betting giants.

6/2/25 9:46AM

DraftKings shares dropped more than 5% Monday morning, while FanDuel parent Flutter Entertainment slipped 3%, after Illinois quietly passed a new budget over the weekend that tacks on steep new fees for high-volume sportsbook operators. The new legislation, part of the state’s FY26 budget, introduces a tiered tax structure that charges $0.25 per wager up to 20 million bets annually and $0.50 for every bet beyond that.

The update effectively singles out DraftKings and FanDuel, since they are the only two operators that surpass that threshold in Illinois. The move could push their effective tax rates from about 35% to over 50%, just a year after the last increase from 15%.

Analysts estimate the changes could cut $70 million to $80 million from DraftKings’ annual EBITDA by 2026, or about 6% of its bottom line, with FanDuel also facing a nine-figure hit. They also warned that passing the cost on to customers or slashing promotions could hurt competitiveness against smaller rivals.

Prior to the dip, DraftKings shares were up about 1% over the past year while Flutter jumped 34% in the same time frame.

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JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.