DraftKings CEO Criticizes Gambling Provision In Trump's OBBBA

DraftKings CEO Jason Robins slammed a brand-new tax arrangement in President Donald Trump's proposed megabill, calling it "extremely strange" and illogical. Robins questioned why gamblers should pay earnings tax on money that isn't real profit.


- DraftKings CEO states Trump's OBBBA doesn't make sense.
- The OBBBA avoids bettors from subtracting 100% of their losses.
- DraftKings states it's dealing with lawmakers to nix the provision.


"I do believe it's something that doesn't makes sense," Robins informed CNBC's Jim Cramer. "If you can't subtract all your losses, you understand, how does that make sense that you pay income tax on something that's not actually income."


The provision, highlighted in the GOP's One Big Beautiful Bill Act (OBBBA), would avoid gamblers from 100% of their losses from their jackpots, which was formerly thought about standard practice. Under the brand-new guideline, just 90% of losses can be deducted, suggesting that even a break-even bettor still owes taxes.


Robins associated the modification to a budget reconciliation technicality referred to as the Byrd guideline and added that DraftKings is dealing with lawmakers to reverse the arrangement.


Congress presents FAIR BET Act to combat Trump costs


DraftKings isn't alone in opposing Trump's megabill. Nevada Congresswoman Dina Titus has actually introduced the FAIR BET Act to counter the questionable modification in betting tax policy.


The new guideline triggered a backlash from market specialists who argue the OBBBA unjustly burdens taxpayers and discourages transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, seeks to restore the previous guideline, which enables 100% of wagering losses to be deducted from profits.


Titus condemned the wagering tax arrangement, stating Senate Republicans inserted it without House permission which it might drive gamblers towards unregulated markets. Titus insists her bill guarantees fairness for all wagerers and promotes responsible wagering through legal operators.


DraftKings reports positive Q2 revenues


DraftKings, meanwhile, reported its second-ever lucrative quarter as a public company, resulting in a 7% jump in stock value in after-hours trading on Wednesday. The business published $1.51 billion in profits for Q2 2025, exceeding expert expectations of $1.43 billion.


Robins credited the business's success to strong consumer engagement, effective acquisition strategies, and favorable wagering outcomes. He revealed optimism about the continued legalization of sports wagering throughout the U.S., anticipating major markets, such as Texas and California, will be consisted of.