BUFFALO, N.Y. — DraftKings is reversing course after proposing a surcharge for New York gamblers.
The mobile sports gambling site had announced plans to offer a 3 to 5 percent surcharge. Gamblers in New York flooded the site with complaints, helping spur the reversal.
DraftKings was trying to offset New York's 51 percent tax rate to the state on winning bets. New York's tax rate is the highest of any state in the country.
DraftKings launched in New York in early 2022, when online sports betting went live.
The sports betting company apologized last year after using the Sept. 11, 2001, terror attacks in a promotion, attempting to get people to place bets that required the New York Jets, Mets, and Yankees to win games that day.