Shares of online sports gambling website (NASDAQ: DKNG) got decked on Tuesday, falling 13.5% through 11:50 a.m. ET. The Wall Street Journal reported that Illinois legislators have approved their 2025 budget, including a provision that would more than double taxes on sports betting operators.

Citing multiple analyst reports, TheFly.com estimates that the new law, if signed by the governor, will raise DraftKings' Illinois tax rate from 15% to 36% or 37%.

It's not 100% clear how bad this news is for DraftKings, which paid only $10.2 million in income tax last year, according to data from S&P Global Market Intelligence. Even that sum is surprising, though, because the company reported an operating loss of $786 million last year. So you wouldn't ordinarily expect it to have paid any income tax at all.

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Source Fool.com