28th May 2024 16:24
(Alliance News) - Flutter Entertainment PLC shares fell on Tuesday after the US state of Illinois passed a measure that would hike tax on sports betting.
Flutter shares fell 7.0% to 14,870.00 pence each in late dealings in London on Tuesday.
According to the Illinois General Assembly, the new progressive model could mean as high as a 40% levy on "annual adjusted gross sports wagering receipts in excess of USD200.0 million". The current sports gambling tax rate is 15%.
The new measure would impose a 20% tax rate on annual adjusted gross sports wagering receipts up to and including USD30.0 million, 25% on receipts over USD30.0 million but under USD50.0 million, 30% for receipts over USD50.0 million but under USD100.0 million and 35% between USD100.0 million and USD200.0 million.
The Sports Betting Alliance believes the proposed measures "will cause real harm".
"Rather than heeding the outcry from tens of thousands of residents who vocally opposed more than doubling sports betting taxes, the Illinois Senate advanced a budget tonight that would make Illinois sports betting tax the second highest in the country and counter-productively penalizes sports betting operators who invested millions into the local economy and created jobs in the state," SBA President Jeremy Kudon said Monday.
"The tax hike will mean worse products, worse promotions, and inevitably, worse odds for Illinois customers."
By Eric Cunha, Alliance News news editor
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