Jim Cramer on New Gambling Tax Law and its Impact on DraftKings & Flutter

New Gambling Tax Legislation

• 💰 A recent budget bill signed into law includes an obscure provision that changes how gambling income is taxed.
• ⚠️ Under current law, gambling losses can be deducted from winnings, meaning taxes are paid only on net winnings.
• 📉 Starting next year, only 90% of gambling losses will be deductible, meaning individuals will pay taxes on a larger portion of their winnings, even if they break even.

Impact on Professional Gamblers and the Industry

• 🎯 This change could significantly impact professional gamblers, potentially making it difficult for them to remain in business.
• 📉 For regular bettors, facing taxes on even small net gains or break-even scenarios might discourage participation.
• 🚀 However, analysts suggest that major sports books like DraftKings and FanDuel already deter