Implementing Gaming Surcharge is Not on Penn’s Radar
Penn Entertainment CEO Jay Snowden said that Penn is not considering implementing a gaming surcharge at this moment, though he did not rule out the possibility entirely for the future.
CEO Jay Snowden’s Response
During the Q2 earnings call, CEO of Penn Entertainment Jay Snowden was asked if the company is considering implementing a gaming surcharge, following the DraftKings announcement on it.
In its financial report, the company did not mention the possibility of introducing such a solution. However, it was almost certain that Snowden would not avoid questions about his competitors’ actions.
“It’s not even on our radar, but I hesitate to say never,” Snowden responded, suggesting that Penn intends to continue monitoring the market situation, including whether FanDuel decides to introduce a gaming surcharge and how this issue develops further with DraftKings.
DraftKings’ Gaming Surcharge Controversy
The gaming surcharge remains a hot topic that continues to heat up the U.S. market. Recall that during its Q2 financial report, DraftKings announced that starting January 1, 2025, it will charge an additional fee on players’ winnings in four U.S. states.
The company will implement these measures in New York, Pennsylvania, Illinois, and Vermont—states with the highest taxes imposed on operators.
The operator faced widespread criticism from players, many of whom declared that they would stop using DraftKings’ services once the surcharge is implemented. Industry participants also expressed little understanding for the operator’s decision, predicting that this move will result in losses for the Boston-based company.
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