Posted on: August 14, 2024, 08:03h.
Last updated on: August 14, 2024, 08:03h.
DraftKings didn’t have its best day on Tuesday. Just moments after retreating from its plans to place a tax on certain winning bets, the leading sportsbook erroneously sent out a mass email to bettors about golf bets they didn’t wager.
DraftKings on Tuesday night announced it was reversing course on its decision to implement a surcharge on winning bets in highly taxed sports betting states. The announcement came after FanDuel parent Flutter Entertainment revealed during its second-quarter earnings report that it would not follow its rival’s lead in placing a levy on winning wagers.
DraftKings said its decision not to actualize the supplement fee, which it billed as “fairly nominal,” wording that was pushed back on by the sports betting community after it was realized to be more than 3%, was due to customer feedback. The sportsbook was ripped on social media for considering the winning bet surcharge in the first place.
Were you expecting a positive reaction?” asked one person on X.
Right…gamblers were running for the exits,” tweeted another.
In the coming weeks and months, it will be revealed whether the tax controversy resulted in DraftKings losing market share. Those revelations will come through monthly state wagering reports in jurisdictions that break down handle and revenue by operator, as well as analysts and market research firms tabulating market share.
Golf Email Blast
As the sports betting world was in an uproar over the DraftKings news to withdraw the winning bets tax, which was scheduled to begin Jan 1. 2025, many DraftKings customers and former customers received an email about their golf bets. The email provided an update about two or more golfers being tied for the same winning position and that DraftKings settled the wagers using Dead Heat Reduction rules.
DraftKings’ Dead Heat Reduction is calculated by dividing the odds proportionally among the number of winners for a particular position. The payout is less than what the bettor would have won should only one golfer have finished in the specific position.
The DraftKings email informed bettors that they were being gifted a bonus bet as a “one-time courtesy.” The only problem is none of the recipients of the golf bets email had actually placed golf bets that resulted in the issue DraftKings was emailing about.
DraftKings didn’t send a follow-up email informing recipients to disregard the previous communication but instead provided an update on its social media channels.
You may have received an email regarding this past weekend’s golf tournament and the ‘Dead Heat’ rule that was inadvertently sent more broadly than intended. Please disregard that email,” the DraftKings Sportsbook account on X posted.
Operators Pounce
The DraftKings’ golf email reportedly went to people who have never even registered with the sportsbook.
How do you have my email when I’ve never set up an account with you?” asked one on X. A reply from another person said, “Same.”
Several responses to the recent DraftKings social media posts have said they’re taking their sports betting business elsewhere. One commenter said he’s already withdrawn his DraftKings account money and moved to BetRivers.
The BetRivers Sportsbook has been active on the DraftKings discussions and offering assistance in helping customers open and fund new accounts.
DraftKings’ sports betting competitors are naturally trying to capture some of the book’s customers following its recent trials and tribulations. Before FanDuel followed, BetRivers, Caesars Sportsbook, and BetMGM said they would not follow DraftKings and would remain tax-free on winning bets.
