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 "very strange" and illogical. Robins questioned why gamblers need to pay income tax on money that isn't actual profit.


- DraftKings CEO says Trump's OBBBA does not make sense.
- The OBBBA prevents gamblers from deducting 100% of their losses.
- DraftKings states it's working with lawmakers to nix the provision.


"I do believe 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 good sense that you pay earnings tax on something that's not in fact earnings."


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


Robins attributed the change to a spending plan reconciliation technicality referred to as the Byrd guideline and added that DraftKings is dealing with lawmakers to reverse the arrangement.


Congress introduces 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 gambling tax policy.


The new guideline sparked a backlash from industry experts who argue the OBBBA unfairly strains taxpayers and dissuades transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, looks for to bring back the previous guideline, which enables 100% of wagering losses to be deducted from profits.


Titus condemned the betting tax arrangement, stating Senate Republicans inserted it without House consent which it might drive gamblers towards uncontrolled markets. Titus insists her bill makes sure fairness for all gamblers and promotes accountable wagering through legal operators.


DraftKings reports favorable Q2 revenues


DraftKings, meanwhile, reported its second-ever rewarding quarter as a public business, leading to a 7% jump in stock worth in after-hours trading on Wednesday. The company published $1.51 billion in revenue for Q2 2025, surpassing expert expectations of $1.43 billion.


Robins credited the company's success to strong consumer engagement, effective acquisition strategies, and beneficial results. He revealed optimism about the continued legalization of sports wagering across the U.S., anticipating major markets, such as Texas and California, will be included.