Daily Fantasy Sports Companies Could See 15 Percent Tax on Revenues

Source: Boston Globe

By Andy Rosen

The legislative action comes as DraftKings solidifies its position as the industry leader, surpassing longtime rival FanDuel during the crucial NFL season following a failed merger of the two companies.

DraftKings said this month that it plans to add hundreds of workers in Boston and move from its downtown headquarters to a larger space in the Back Bay .

But the coming debate highlights the unsteady conditions that DraftKings and its competitors have weathered as they built their businesses.

The games exploded in popularity in 2015, as DraftKings and FanDuel amassed big audiences with expensive advertising blitzes. But they soon ran into regulatory and legislative battles across the nation.

Under Donoghue’s proposal, as under current law, the games would have to follow regulations adopted by Attorney General Maura Healey that ban players under 21, prohibit games that are based on college sports, and impose other consumer protections.

Donoghue said that her proposed legislation could help put to rest any lingering questions about the legality of daily fantasy sports, “once and for all.”