DraftKings CEO Criticizes Gambling Provision In Trump's OBBBA
DraftKings CEO Jason Robins slammed a new tax provision in President Donald Trump's proposed megabill, calling it "extremely odd" and illogical. Robins questioned why gamblers should pay earnings tax on money that isn't actual profit.
- DraftKings CEO states Trump's OBBBA doesn't make sense.
- The OBBBA avoids bettors from deducting 100% of their losses.
- DraftKings says it's working with legislators to nix the provision.
"I do believe it's something that does not makes good sense," Robins informed CNBC's Jim Cramer. "If you can't deduct all your losses, you know, how does that make sense that you pay earnings tax on something that's not actually earnings."
The arrangement, highlighted in the GOP's One Big Beautiful Bill Act (OBBBA), would avoid gamblers from subtracting 100% of their losses from their payouts, which was previously considered basic practice. Under the new guideline, only 90% of losses can be subtracted, implying that even a break-even bettor still owes taxes.
Robins associated the change to a budget plan reconciliation technicality understood as the Byrd rule and added that DraftKings is working with legislators to the provision.
Congress presents FAIR BET Act to fight Trump bill
DraftKings isn't alone in opposing Trump's megabill. Nevada Congresswoman Dina Titus has introduced the FAIR BET Act to counter the questionable change in betting tax policy.
The new rule stimulated a backlash from industry experts who argue the OBBBA unfairly burdens taxpayers and dissuades transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, seeks to restore the previous guideline, which allows 100% of wagering losses to be subtracted from earnings.
Titus condemned the betting tax arrangement, stating Senate Republicans inserted it without House permission and that it could drive gamblers towards uncontrolled markets. Titus insists her expense ensures fairness for all gamblers and promotes accountable betting through legal operators.
DraftKings reports positive Q2 incomes
DraftKings, meanwhile, reported its second-ever successful quarter as a public business, leading to a 7% dive in stock worth in after-hours trading on Wednesday. The company published $1.51 billion in revenue for Q2 2025, surpassing analyst expectations of $1.43 billion.
Robins credited the business's success to strong consumer engagement, efficient acquisition methods, and beneficial wagering results. He revealed optimism about the continued legalization of sports wagering throughout the U.S., expecting major markets, such as Texas and California, will be included.