DraftKings CEO Criticizes Gambling Provision In Trump's OBBBA
DraftKings CEO Jason Robins criticized a brand-new tax arrangement in President Donald Trump's proposed megabill, calling it "extremely unusual" and illogical. Robins questioned why bettors ought to pay earnings tax on money that isn't real earnings.
- DraftKings CEO states Trump's OBBBA does not make sense.
- The OBBBA avoids gamblers from deducting 100% of their losses.
- DraftKings states it's working with legislators to nix the provision.
"I do think it's something that does not makes good sense," Robins told 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 earnings."
The provision, highlighted in the GOP's One Big Beautiful Bill Act (OBBBA), would prevent bettors from deducting 100% of their losses from their profits, which was formerly considered standard practice. Under the new rule, just 90% of losses can be deducted, meaning that even a break-even gambler still owes taxes.
Robins attributed the change to a budget plan reconciliation technicality referred to as the Byrd guideline and included that DraftKings is working with legislators to reverse the provision.
Congress presents FAIR BET Act to combat Trump expense
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 gambling tax policy.
The new rule triggered a backlash from industry experts who argue the OBBBA unfairly strains taxpayers and discourages transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, seeks to restore the previous guideline, which allows 100% of betting losses to be subtracted from jackpots.
Titus condemned the betting tax arrangement, stating Senate Republicans placed it without House consent and that it might drive gamblers towards uncontrolled markets. Titus insists her costs ensures fairness for all wagerers and promotes responsible betting through legal operators.
DraftKings reports favorable Q2 profits
DraftKings, on the other hand, reported its second-ever lucrative quarter as a public business, leading to a 7% dive in stock value in after-hours trading on Wednesday. The company posted $1.51 billion in profits for Q2 2025, surpassing analyst expectations of $1.43 billion.
Robins credited the company's success to strong customer engagement, effective acquisition methods, and beneficial betting outcomes. He revealed optimism about the continued legalization of throughout the U.S., expecting major markets, such as Texas and California, will be consisted of.