DraftKings has revealed it is no longer pursuing plans to introduce a first-of-its-kind surcharge on sports bet winnings in states that have high taxes on revenue. The Boston-based company announced on Tuesday that it is backtracking on the matter after listening to customers. The share price jumped more than 5% on the back of the news.

would have impacted the winnings of bettors in New York, Pennsylvania, Illinois, and Vermont

DraftKings only announced on August 1 that it would levy a charge of about 0.25% on the net winnings of users in states where the tax rate was over 20%, starting in January. This would have impacted the winnings of bettors in New York, Pennsylvania, Illinois, and Vermont.

The plan received much backlash, with bettors feeling they were getting squeezed by the operator, who they claimed was more concerned with a quick bump to its bottom line than satisfying users. Other operators in the US market were quick to confirm they wouldn’t pursue a similar approach.

Flutter Entertainment, FanDuel’s parent company, announced its earnings on Tuesday and said it would lower spending on promotions in high-tax states rather than introducing a surcharge.