DraftKings Inc.-rte-company> and FanDuel-owner Flutter Entertainment Plc-rte-company> fell on Tuesday after the Illinois Senate passed legislation that would raise taxes on sports betting.

The bills would make the sports gambling tax, which is currently 15%, to a new graduated format that would be as high as 40% on the adjusted gross revenue of sports gaming companies. The legislation, part of the Illinois budget package-bsp-bb-link>, heads to the state’s House.

DraftKings fell 10% on Tuesday, the most since August, and Flutter fell by 7.7% in US trading.

Needham analyst Bernie McTernan-bsp-person> said that a potential higher tax rate in …