DraftKings CEO Jason Robins criticized a new tax provision in President Donald Trump's proposed megabill, calling it "very strange" and illogical. Robins questioned why gamblers should pay income tax on money that isn't actual profit.
Key Takeaways
- DraftKings CEO says Trump's OBBBA doesn't make sense.
- The OBBBA prevents gamblers from deducting 100% of their losses.
- DraftKings says it's working with lawmakers to nix the provision.
“I do think it’s something that doesn’t makes sense,” Robins told CNBC’s Jim Cramer. “If you can’t deduct all your losses, you know, 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 prevent gamblers from deducting 100% of their losses from their winnings, which was previously considered standard practice. Under the new rule, only 90% of losses can be deducted, meaning that even a break-even gambler still owes taxes.
Robins attributed the change to a budget reconciliation technicality known as the Byrd rule and added that DraftKings is working with lawmakers to reverse the provision.
Congress introduces FAIR BET Act to combat Trump bill
DraftKings isn’t alone in opposing Trump’s megabill. Nevada Congresswoman Dina Titus has introduced the FAIR BET Act to counter the controversial change in gambling tax policy.
The new rule sparked a backlash from industry professionals who argue the OBBBA unfairly burdens taxpayers and discourages transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, seeks to restore the previous rule, which allows 100% of betting losses to be deducted from winnings.
Titus condemned the betting tax provision, saying Senate Republicans inserted it without House consent and that it could drive gamblers toward unregulated markets. Titus insists her bill ensures fairness for all bettors and promotes responsible wagering through legal operators.
DraftKings reports positive Q2 earnings
DraftKings, meanwhile, reported its second-ever profitable quarter as a public company, resulting in a 7% jump in stock value in after-hours trading on Wednesday. The company posted $1.51 billion in revenue for Q2 2025, surpassing analyst expectations of $1.43 billion.
Robins credited the company's success to strong customer engagement, efficient acquisition strategies, and favorable betting outcomes. He expressed optimism about the continued legalization of sports betting across the U.S., expecting major markets, such as Texas and California, will be included.
Yet, despite its strong performance, DraftKings chose not to update its full-year 2025 guidance, maintaining projections that account for higher tax rates in New Jersey, Louisiana, and Illinois, as well as the launch of operations in Missouri.
