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 odd" and illogical. Robins questioned why bettors should pay income tax on money that isn't actual earnings.


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


"I do believe it's something that does not makes 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 in fact income."


The provision, highlighted in the GOP's One Big Beautiful Bill Act (OBBBA), would prevent bettors from subtracting 100% of their losses from their jackpots, which was previously considered standard practice. Under the new guideline, just 90% of losses can be subtracted, suggesting that even a break-even bettor still owes taxes.


Robins associated the modification to a budget reconciliation technicality referred to as the Byrd guideline and added that DraftKings is dealing with lawmakers to reverse the provision.


Congress introduces FAIR BET Act to fight Trump bill


DraftKings isn't alone in opposing Trump's megabill. Nevada Congresswoman Dina Titus has presented the FAIR BET Act to counter the questionable change in policy.


The new rule stimulated a backlash from industry professionals who argue the OBBBA unjustly strains taxpayers and discourages transparent reporting. The FAIR BET Act, co-sponsored by Rep. Ro Khanna of California, looks for to bring back the previous guideline, which allows 100% of wagering losses to be subtracted from jackpots.


Titus condemned the wagering tax provision, saying Senate Republicans inserted it without House permission and that it could drive bettors towards unregulated markets. Titus insists her bill ensures fairness for all wagerers and promotes accountable betting through legal operators.


DraftKings reports positive Q2 profits


DraftKings, meanwhile, reported its second-ever rewarding quarter as a public company, leading to a 7% jump in stock value in after-hours trading on Wednesday. The company posted $1.51 billion in earnings for Q2 2025, going beyond expert expectations of $1.43 billion.


Robins credited the business's success to strong consumer engagement, efficient acquisition techniques, and favorable wagering results. He revealed optimism about the continued legalization of sports wagering across the U.S., anticipating significant markets, such as Texas and California, will be consisted of.