Rush Street Interactive Won’t Implement Gaming Tax Surcharge
Rush Street Interactive (RSI), the parent company of BetRivers and RushBet, has announced that it will not introduce a surcharge on winning bets, following DraftKings’ recent decision to implement such a charge in states with high tax rates.
CEO Commits to Consumer Satisfaction
DraftKings revealed its plan on August 1, stating it would add a surcharge starting January 1, 2025, in states with tax rates exceeding 20%. The industry is now watching to see if any other operators will follow suit. For now, we know that RSI will not take this step.
Richard Schwartz, CEO of Rush Street Interactive, explained that the decision to forgo a surcharge was straightforward. “RSI remains committed to maintaining its leadership position in the industry by continuously prioritizing the needs and preferences of its players,” Schwartz stated.
“We believe that RSI’s focus on customer satisfaction, coupled with its innovative rewards and loyalty programmes, sets a benchmark for excellence in the online gaming industry,” added Schwartz.
DraftKings’ Move Slammed by the Industry
The announcement of the planned introduction of a gaming surcharge has sparked significant controversy among both industry representatives and players. The former criticized the move, with CEO Jason Robins discussing the details on a recent call, labeling it as a very bad idea that could severely damage DraftKings’ reputation.
Players quickly expressed their dissatisfaction with the proposed changes, with some stating that they would stop using DraftKings’ services if the gaming surcharge goes into effect.
For DraftKings, the reaction of other competitive operators will be crucial. Rush Street Interactive has already confirmed that it does not intend to follow DraftKings’ lead. However, it seems that the decision made by FanDuel will be more significant both for DraftKings and the entire U.S. market.
Recommended