Rush Street Interactive won’t join DraftKings in introducing surcharge

Rush Street Interactive has no plans in introducing a surcharge for its players after DraftKings announced its plans to implement a gaming surcharge last Thursday (1 August).

Rush Street Interactive’s commitment to customer-centric policies follows DraftKings’ Q2 business update. DraftKings said its plans to “address high tax rates” involved introducing surcharge on winning bets in states with a tax rate exceeding 20% starting from 1 January 2025.

Rush Street Interactive and its brands, which include BetRivers and RushBet, says it is reaffirming its “dedication to providing exceptional value” for players by not following in DraftKings’ footsteps.

It was an “easy decision” for Rush Street Interactive CEO Richard Schwartz.

“RSI remains committed to maintaining its leadership position in the industry by continuously prioritising the needs and preferences of its players,” Schwartz explained.

“We believe that RSI’s focus on customer satisfaction, coupled with its innovative rewards and loyalty programs, sets a benchmark for excellence in the online gaming industry.”

DraftKings under fire for surcharge
DraftKings’ announcement has caused ripples in the US sports betting industry, with bettors and analysts both critical.

Currently, the surcharge will apply in four states. This is down to the tax regimes in New York, Pennsylvania and Vermont, which have tax rates of 51%, 36% and 20% respectively. In May, Illinois passed a sliding scale rate with a maximum of 40% for the highest-earning operators and a minimum of 20% for the lowest.

DraftKings has defended its decision, stating it’ll be “fairly nominal” to players, but this hasn’t warded off widespread condemnation.

Analysts don’t agree. Regulus Partners said the operator would “lose market share, damage a brand and undermine credibility in one easy step” with the charge.

Rush Street Interactive has now become the first major US operator to completely rule out doing so. To date, no others have spoken out publicly against a similar move.

Rush Street Interactive’s Q2 results
Last week, Rush Street Interactive announced its Q2 earnings, and while a significant rise in LatAm revenue was particularly noteworthy, the business continues to grow strongly in the US.

Rush Street Interactive’s Q2 group revenue was $220.4m, an increase of 33.5%, with the vast majority generated from North America. The business, which skews towards icasino over sports, is also increasingly profitable, with net loss for the quarter reduced to just $100,000.