DraftKings announced several big changes at the end of the week on the coattails of its first profitable quarter as a public company.

The sportsbook will become the first to tax U.S. bettors on their winnings in states that have a tax rate for betting operators above 20%. Illinois, New York, Pennsylvania, and Vermont are among the states impacted, with users getting charged a fee around 3% to 5% on winning bets starting next year.

“If you made a $10 bet to win $20, you would pay like 30 cents,” CEO Jason Robins told CNBC. “We decided that the best course of action is to do what really every other industry [does]—whether it’s hotels, taxis—whatever else you buy generally has some kind of tax.”

The decision comes not long after Illinois hiked up its rate to 40%, which followed New York, New Hampshire, and Rhode Island moving their rates to 51%. DraftKings is making it clear to other states with bills in the works that their legislatures’ decisions will impact consumers.

“I do think that if states start to realize that above a certain level, we can’t invest in our product and customer experience in the way that we need to … it might make them think differently about it,” Robins told CNBC.

Illinois, for its part, felt like it was just catching up to other major betting states with its increase, according to the Chicago Sun-Times, which reported that FanDuel and DraftKings combined for more than $729 million in state revenue last year while paying a combined $110 million in taxes.

More Change: Stock Buyback

After reporting $1.1 billion in revenue for the second quarter that fell behind estimates, DraftKings’s stock dropped 5% Friday morning.

The company also announced a stock buyback plan, repurchasing up to $1 billion of its Class A common stock. CFO Alan Ellingson said the plan “reflects our confidence in the company’s attractive long-term outlook and healthy balance sheet.”

DraftKings has been busy over the last few weeks, selling the gambling media hub VSiN back to Musburger Media and closing down its non-fungible token business soon afterward.

Diamond Sports Group, the regional sports network that filed for bankruptcy last year, could leave up to five NBA teams without a local broadcasting partner if it’s able to complete its reorganization and continue operation.

The company could terminate its RSN deals with the Mavericks, Pelicans, Thunder, Pistons, and Grizzlies, according to Sports Business Journal, though DSG could limit it to only three of those teams.

The other 10 teams that DSG has deals with—the Bucks, Cavaliers, Clippers, Hawks, Heat, Hornets, Magic, Pacers, Spurs, and Timberwolves—should expect their contracts to remain intact. However, their fees are expected to be cut by about 30% to 40% for the 2024–2025 season, which could mean as much as $16 million in lost revenue for the franchises.

The five franchises in danger of losing their deals with DSG are already in the process of finding alternative methods to air their games locally. Four of the teams, excluding the Grizzlies, aired at least five games through local, over-the-air channels last season. Moving games to over-the-air networks would emulate the Suns and the Jazz, who also have direct-to-consumer packages available for their fan bases.

While the Jazz reportedly nearly tripled their viewership because of the move to free, over-the-air television, they did not come close to hitting previous revenue marks. But given the revenue cut that the franchises tied to DSG will likely receive, it’s still unclear whether the better long-term play is through free or paid distribution.

Here Comes Amazon

Amazon is the newest player in the NBA’s national media-rights deal, as the league partnered with incumbent Disney and old friend NBCUniversal.

The streaming giant has now emerged as an option to create a national regional network, especially as it has already agreed to a $115 million deal with DSG for 15% of the company once it exits bankruptcy.

Amazon has wide distribution with Prime Video, but it has also shown a commitment to sports, from acquiring the rights to major playoff games to smaller regular-season contests across several sports.