Shares of DraftKings (DKNG) and Flutter Entertainment (FLUT, FLTR.L) fell sharply on Tuesday after the Illinois state Senate passed a budget that includes a tax hike on sports betting companies. The concern for investors is that other states could follow suit.

Yahoo Finance's Seana Smith and Brad Smith break down the concerns about the legislation for the companies.

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This post was written by Stephanie Mikulich.