10 Firms Defy Market’s Bullish Momentum

3. DraftKings Inc. (NASDAQ:DKNG)

Shares of DraftsKing Inc (DKNG) fell by 3.2 percent on Wednesday to end at $38.72 apiece following news that the state of Maryland, in a budget report on Wednesday, suggested it would begin implementing significant tax increases on sports betting and gambling revenues.

The budget, presented for the year 2025, included plans to hike sports betting taxes to 30 percent from 15 percent previously, while table game taxes are set to increase to 25 percent from 20 percent at present.

The proposed tax hikes are part of a broader tax reform that aims to make Maryland’s tax system “simple, fair, and pro-growth” while also investing in economic growth initiatives.

Maryland’s tax plan also outlines changes such as doubling the standard deduction, consolidating income tax brackets, and introducing new tax rates for higher income levels, in addition to a temporary surcharge on capital gains for households earning above a certain threshold.