Sunday, August 16, 2026 See who Washington just made rich Go Pro · $40/mo →
Money Racket
Who Cashes In When Washington Moves
ENERGYArmy Corps Permits Line 5 Tunnel—Michigan Blocks PathtodayCRYPTOT. Rowe Price's Active Multi-Token Crypto ETF Is a Fee-War Warning Shot for Bitwise and Grayscale4 weeks agoTRADE & TARIFFSTariff Refunds Turbocharge Retailer EarningstodayENERGYMichigan Renews Enbridge's Line 5 Tunnel Permit, Removing the Biggest Regulatory Overhang on the Stock4 weeks agoCRYPTOSEC Delays Crypto Rules—Uncertainty PersistsyesterdayTECHBosch's $225M CHIPS Award for Silicon Carbide Puts Wolfspeed and Onsemi on Notice4 weeks agoTRADE & TARIFFSKimberly-Clark Pockets $45M Tariff RefundyesterdayENERGYNew Mexico Blocks Oracle's Data Center Gas Pipeline, Exposing the Fragility of Big Tech's Power Build-Out4 weeks agoTRADE & TARIFFSTrump Tariffs on Drones Boost U.S. MakersyesterdayDEFENSEPentagon's Laser Weapon Contracts for Drone Defense Open a New Revenue Line for Northrop and L3Harris4 weeks agoHEALTHCARE & FDASimparica Trio Gets Screwworm EUA—Zoetis Wins2 days agoENERGYMichigan's Line 5 Permit Renewal Is a Clear Win for Enbridge — and a Setback for Pipeline Opponents4 weeks agoDEFENSEBlackSky Lands Multi-Year Satellite Contract2 days agoCRYPTOT. Rowe Price's Active Multi-Token Crypto ETF Is a Fee Story — and a Pressure Test for Bitwise and Grayscale4 weeks agoTECHFCC Eases Broadband Label Rules—ISPs Win Flexibility3 days agoHEALTHCARE & FDACMS's Site-Neutral and 340B Cuts Would Squeeze Hospital Systems and Hand Wins to Outpatient Rivals4 weeks agoDEFENSEIonQ Lands $28M U.S. Defense Quantum Contract3 days agoWHITE HOUSEWhite House Cybersecurity Clearinghouse Creates a Direct Revenue Line for CrowdStrike, Palantir, and Microsoft4 weeks agoHEALTHCARE & FDAFDA Clears Screwworm Prevention Drug for U.S. Livestock4 days agoWHITE HOUSEWhite House Control Over Frontier AI Access Reshapes the Pecking Order — Microsoft and Oracle Gain, Open-Source Loses4 weeks agoENERGYNRC Approves NAC MAGNASTOR Spent Fuel Storage Cask4 days agoHEALTHCARE & FDACMS's Site-Neutral and 340B Reform Proposal Squeezes Hospital Margins and Lifts Independent Pharmacies4 weeks agoHEALTHCARE & FDAFDA Updates Fresh-Cut Produce Safety Guidance4 days agoDEFENSEU.S.-Iran Escalation and a Stalled Strait of Hormuz Are a Windfall for Tanker Owners and Defense Primes4 weeks agoWHITE HOUSETrump Orders Childhood Vaccine Schedule Spacing4 days agoENERGYNew Mexico's Pipeline Denial Puts Oracle's Data Center Expansion on Ice — and Highlights Every Hyperscaler's Power Risk4 weeks agoWHITE HOUSETrump Order Splits MMR Vaccine—Pharma Faces Demand Shift5 days agoTECHBosch's $225M CHIPS Award for Silicon Carbide Chips Is a Direct Threat to Wolfspeed's U.S. Market Share4 weeks agoDEFENSETrump Pushes $1.5T Defense Budget—Lockheed, RTX, GD Lock in Gains6 days agoWHITE HOUSEWhite House Control Over Frontier AI Access Reshapes Who Wins the Model Race4 weeks agoWHITE HOUSEWhite House Drafts Vaccine-Autism Order—Pharma Faces Uncertainty6 days agoWHITE HOUSETrump's Defense Supply Chain Order Tightens Waiver Rules — Domestic Parts Makers Win, Foreign-Sourced Primes Face Friction4 weeks agoTECHTrump Administration Adds 6 Chipmakers to U.S. Portfoliolast weekDEFENSEPentagon's $80M Drone Defense Contract Points to the Counter-UAS Names Worth Watching4 weeks agoDEFENSEPentagon Awards Space-Based Target Tracking Contractslast weekENERGYNew Jersey's Nuclear Energy Law Opens a Real Revenue Path for Small Reactor Developers4 weeks agoENERGYMichigan Court Rejects Enbridge Line 5 Permit Under Great Lakeslast weekDEFENSEU.S.-Iran Conflict Escalation Stalls Hormuz Shipping — Defense Contractors and Oil Majors Are the Immediate Read4 weeks agoWHITE HOUSEDHS Tightens H-1B/L-1 Visa Fees—Tech Hiring Costs Rise for Employerslast weekWHITE HOUSETrump's Critical Minerals Order Cuts China Out of the Defense Supply Chain — and Sends Money to U.S. Miners4 weeks agoTECHU.S. Signs $874M Semiconductor Research LOIs—Chip Makers Get Federal Backinglast weekTECHBosch's $225M CHIPS Act Award for Roseville Chips Away at U.S. Dependence on Asian Auto Semiconductors4 weeks agoTRADE & TARIFFSRetailers Sell Off Tariff Refund Rights for Cash—Windfall Monetized Before Payoutlast weekCRYPTOWhite House Concedes Ethics Provision in Crypto Bill — Clearing the Last Roadblock for Stablecoin Legislation4 weeks agoHEALTHCARE & FDAFDA Approves Tudriqev for Advanced Melanomalast weekENERGYTrump's Saudi Nuclear Pact Without Enrichment Safeguards Heads to Congress — U.S. Uranium and Nuclear Services Names Are the Play4 weeks agoHEALTHCARE & FDAFTC Sues Hims & Hers Over Privacy and Billing Practiceslast weekHEALTHCARE & FDACMS Freezes $1 Billion in Medicaid Payments to California and Minnesota — Managed Care Insurers Face Revenue Gaps4 weeks agoMARKETSFTC Threatens Booking Holdings Over Priceline Practiceslast weekTRADE & TARIFFSTrump's 50% Canada Tariff Threat Keeps U.S. Aluminum Tight — Domestic Producers Win, Manufacturers Pay3 weeks agoDEFENSERising Defense Spending Lifts Northrop Grumman Outlooklast weekDEFENSEHouse Passes $1.15T Defense Bill — Missile Defense, Shipbuilding, and Next-Gen Air Get the Money3 weeks agoTRADE & TARIFFSTrump Administration Hits $100B Tariff Refund Milestonelast weekENERGYNRC Approves Holtec's Upgraded Spent Fuel Storage System — A Quiet Win for Nuclear's Capacity Expansion3 weeks agoHEALTHCARE & FDACMS Raises IRF Payments for 2027—Rehab Hospitals Get Relieflast weekCRYPTOThe Senate's Landmark Crypto Bill Creates Winners Inside the ETF and Exchange Stack3 weeks agoHEALTHCARE & FDACMS Ends Medicare Part D Subsidy—Drug Plan Insurers Face Margin Pressurelast weekENERGYTrump Signs the Saudi Nuclear Deal — and U.S. Uranium and Reactor Companies Are the Quiet Winners3 weeks agoHEALTHCARE & FDAHHS Boosts Hospital Payments by $2 Billion—Acute Care Operators Winlast weekDEFENSEThe U.S.-Iran War Is Costing $37.5B and Counting — Here's Where That Money Goes3 weeks agoTRADE & TARIFFSAmazon Pockets $600M Tariff Refund—Retail Rivals Face Margin Squeezelast weekDEFENSEOracle Lands a $7B Pentagon Software Contract — and the Market Should Take It Seriously3 weeks agoENERGYMichigan Court Vacates Line 5 Permit—Enbridge Faces Shutdown Risklast weekWHITE HOUSETrump's Critical Minerals Order Cuts China Out of the Military Supply Chain — These Miners Fill the Gap3 weeks agoHEALTHCARE & FDAHumana Exits MA Markets—600K Members Face Plan Disruption2 weeks agoTRADE & TARIFFSTariffs on Indian Pharma Are Coming — and U.S. Generic Drug Buyers Will Pay the Bill3 weeks agoWHITE HOUSETrump Blocks Critical Minerals Exports—U.S. Miners Get Protected Market2 weeks agoHEALTHCARE & FDACMS's Star Ratings Overhaul Rescues the Biggest Medicare Advantage Insurers — For Now3 weeks agoDEFENSEHouse Passes $95B Iran War Package—Defense Contractors Lock in Revenue2 weeks agoMARKETSChina's $765M Antitrust Fine on Trip.com Is a Warning Shot for U.S.-Listed Chinese Consumer Stocks3 weeks agoHEALTHCARE & FDAFDA Revokes Petroleum-Based Food Dyes—Natural Color Makers Win2 weeks agoDEFENSEPentagon's $7B Oracle Software Deal Is One of the Cleanest Defense-Tech Wins in Years3 weeks agoTECHCommerce Awards $874M in Semiconductor R&D LOIs—Chip Makers Get Federal Backing2 weeks agoDEFENSEPentagon Awards Oracle $7B Software Consolidation Deal—Direct Win for Oracle, Pressure on Smaller Defense IT Rivals3 weeks agoTRADE & TARIFFSAmazon Gets $600M Tariff Refund—Retailers Lift Guidance on Windfall2 weeks agoTECHFCC Tightens Submarine Cable Licensing Rules—Tech Giants Face New Compliance Costs, Telecom Carriers Gain Regulatory Clarity3 weeks agoSEARCH DEMANDData Center Power Exchange2 weeks agoHEALTHCARE & FDACMS Overhauls Medicare Advantage Star Ratings—UnitedHealth, Humana, and Anthem Positioned to Gain from Simplified Metrics3 weeks agoSEARCH DEMANDCasgevy List Price: $2.2 Million2 weeks agoDEFENSEHouse Passes $1.15 Trillion Defense Bill—Lockheed, Raytheon, and General Dynamics Positioned for Record Spending3 weeks agoENERGYPHMSA Updates Pipeline Safety Standards—Compliance Costs Hit Operators, Benefit Inspectors2 weeks agoDEFENSEPentagon Awards Oracle $7B Software Consolidation Deal—Largest Defense IT Overhaul in Years3 weeks agoMARKETSSEC Explores 23-Hour Stock Trading—Market Makers and Tech Platforms Get New Revenue2 weeks agoDEFENSERocket Lab Wins $266M Space Force Contract—Suborbital Launch Capability Becomes Defense Asset3 weeks agoDEFENSEHouse Passes $1.15T Defense Bill—Lockheed, Raytheon, General Dynamics Lock in Revenue2 weeks agoHEALTHCARE & FDACMS Overhauls Medicare Advantage Star Ratings—Big Insurers Win, Quality Metrics Tighten3 weeks agoDEFENSEPentagon Awards Largest F-35 Spare Parts Contract—Lockheed Locks in Sustainment Revenue2 weeks agoDEFENSERocket Lab Wins $266M Space Force Missile Defense Contract—Suborbital Launch Niche Gets Federal Validation3 weeks agoHEALTHCARE & FDACMS Stars Redo Lifts Medicare Advantage Insurers—Rating System Overhaul Favors UnitedHealth, Humana, Anthem3 weeks agoDEFENSEPentagon Awards Oracle $7B Software Consolidation Deal—Cloud Incumbents Face Pressure, Oracle Locks in Defense Revenue3 weeks agoCRYPTOSEC Settles Coinbase FOIA Suit Over Missing Gensler Texts—Crypto Compliance Pressure Eases, Coinbase Stock Gains Clarity3 weeks ago
That's your last free article this week. Create a free account for 4 a week — or go Pro for everything.Go Pro →
Markets

DKNG vs. FLUT: Who Actually Eats a State Tax Hike

Illinois' graduated betting tax and new per-wager fee are a live stress test — and Flutter's global FanDuel machine is built to absorb it in ways DraftKings' single-market book isn't.

Image: Money Racket
By at Money Racket · Jan 29, 2026

The mechanism: In 2024, Illinois ditched its flat 15% sports betting tax for a graduated structure that climbs from 20% on the first $30 million of adjusted gross receipts up to 40% above $200 million — squarely targeting the biggest books. Chicago layered on its own 10.25% city tax for 2026. The result: both DraftKings and FanDuel now charge Illinois bettors a $0.50-per-wager transaction fee (effective since Labor Day) just to claw margin back. Illinois isn't an outlier — it's the template other cash-strapped statehouses are watching. Every legal-betting state can raise its rate at will, and several have. That makes tax-rate risk a permanent, recurring line item for every operator's model, not a one-time shock.

Same state, same policy, same $0.50 fee — but the tax hike costs DraftKings nearly triple the share of EBITDA it costs Flutter.

Who cashes in: FLUT is the trade here. Flutter's FanDuel is the largest U.S. sportsbook by handle, but Flutter itself is a global portfolio — Paddy Power and Sky Bet in the UK/Ireland, Sisal in Italy, Betfair internationally, plus stakes in Brazil and beyond. When one jurisdiction's tax bill spikes (analysts pegged the UK's remote gaming duty jump from 21% to 40% at roughly $320 million of pre-mitigation EBITDA impact in 2026), the group absorbs it because dozens of other markets keep generating cash. Citizens analysts estimated Illinois' new per-wager fee adds back about $86 million for FanDuel, covering roughly 2% of Flutter's group EBITDA — a rounding error at the parent level. CZR and MGM also cash in relatively: both run diversified brick-and-mortar casino/resort cash flows (Las Vegas Strip, regional casinos) that dwarf their digital sportsbook segments, so a state tax hike on mobile betting barely dents consolidated EBITDA. PENN, now leaning on ESPN Bet, has a similar retail-casino cushion, though its digital scale is smaller and less proven.

Who is exposed: DKNG is the name actually on the hook. DraftKings has no Flutter-style international book and no casino-floor cash flow to lean on — its EBITDA is overwhelmingly a function of U.S. online sportsbook and iGaming hold. The same Citizens estimate that pegged Illinois' fee at ~2% of Flutter's EBITDA put it at roughly 5.4% of DraftKings' — nearly triple the proportional bite, in the same state, from the same policy. Every additional state that copies Illinois' graduated-rate playbook compounds that gap.

The play: This isn't about who wins Illinois — both books already passed the cost to bettors via the same $0.50 fee. It's about who protects consolidated EBITDA when the next high-tax state (and there will be one) does the same thing. Flutter's geographic and vertical diversification is a real balance-sheet moat; DraftKings' pure-play U.S. digital model is structurally the more tax-elastic stock. Watch state budget seasons — that's the calendar where this thesis gets re-tested.

Source: original report ↗

Free alerts

Free: catalyst alerts, straight to your inbox.

Get the White House orders, federal contracts, and FDA decisions that move money — with who cashes in — free. Unsubscribe in one click.

Free · weekly · unsubscribe anytime. Privacy.

Stay three moves ahead of every practice in your market.

Knowing it happened is table stakes. Money Racket Pro hands you the play — what each move means for your margins, your license, and your patients, and exactly what to do about it — in a two-minute brief, twice a week. The owners who read it never get blindsided.

Get the edge · $40/mo

Join the owners who run ahead of the industry. Cancel anytime, one click.

Share

https://moneyracket.com/article/dkng-flut-state-tax-hike-margin-test/

Discussion

    Leave a comment

    Comments are reviewed before they appear.
    Money Racket Pro

    By the time it's news, the money's already moved.

    The contract award, the executive order, the tariff cut — it mints winners before the financial press connects the dots. Pro gets you there first: what happened, who cashes in, and exactly what to watch — in a two-minute read.

    Go Pro · $40/mo The policy-to-profit brief. Cancel anytime.
    The pre-market brief · Mon–Sat, 7:45am ET Go Pro · $40/mo →