$1.55 Profit per $100 in Bets: FanDuel Urges U.S. to Ease Tax Burden on Sportsbooks

^{Pictured: César Fernandez, Head of U.S. Government Affairs at FanDuel}

The rising tax burden on U.S. sports betting operators poses a threat to the long-term sustainability of the gambling industry. According to SiGMA, FanDuel’s Head of U.S. Government Affairs, César Fernandez, voiced this concern during a recent National Council of Legislators from Gaming States (NCLGS) conference.

In his remarks, Fernandez challenged the common perception that sportsbooks are highly profitable businesses. He revealed that FanDuel earns just $1.55 in actual profit for every $100 wagered by players.

This low margin, he explained, is not just the result of taxes. It also reflects substantial operational and marketing costs, promotional giveaways, and employee wages. In states like New York, where the tax rate reaches 51%, profitability is further eroded.

Even a slight tax increase could make sportsbook operations unprofitable, Fernandez warned. He criticized lawmakers for assuming that betting operators can easily absorb additional fiscal pressure.

Fernandez also reminded policymakers that sportsbooks contribute to state economies beyond taxation and should not be viewed solely as sources of budget revenue.

According to FanDuel and other industry leaders, legalizing online casino gambling (iGaming) could help sportsbooks offset the tax burden.

iGaming operations tend to be more profitable and require lower marketing spend—a trend already evident in states where online casinos are legal. However, as of now, only seven U.S. jurisdictions have officially legalized online casinos.

Earlier, Super Group, the parent company of the Betway brand, announced plans to exit the U.S. gambling market, citing low profitability as the primary reason.