Table of Contents
Starting September 1, 2025, DraftKings will introduce a $0.50 fee on every online and mobile sports wager placed in Illinois. This decision follows the state’s newly approved per-wager tax, which significantly increases the operating costs for licensed sportsbooks.
The move closely follows a similar announcement from FanDuel, which also plans to pass the increased tax burden onto customers. Both companies say they were forced to make this change to stay financially stable under Illinois’ new tax structure.
Why Is This Fee Being Introduced?
The Illinois legislature passed a tax measure on May 31, 2025, that will take effect July 1, 2025, pending final approval from Governor J.B. Pritzker, who has already indicated his support.
Key tax details include:
- $0.25 tax on the first 20 million annual online wagers per operator
- $0.50 tax on each additional bet beyond that
To cover these increased costs, DraftKings will begin charging customers a 50-cent fee on every bet, regardless of the wager amount.
Industry Reaction and Growing Concerns
Jason Robins, CEO and Co-Founder of DraftKings, expressed disappointment with the state’s decision:
“Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources,” said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. “We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”
FanDuel’s parent company CEO, Peter Jackson, added:
“We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators.”
The Sports Betting Alliance (SBA) which includes DraftKings, FanDuel, BetMGM, and Fanatics Sportsbook, strongly criticized the tax for hurting recreational users. According to FanDuel, 90% of its same-game parlays are for $30 or less, and 60% are for $5 or less, meaning casual players will feel the fee most.
Could This Fee Be Removed?
Yes. Both DraftKings and FanDuel have stated they will cancel the new customer fees if the state repeals or changes the per-bet tax law.
DraftKings made it clear that the 50-cent fee is directly tied to Illinois’ new taxation rules and is not intended as a permanent part of their pricing structure unless the state keeps the tax in place.
High Costs Could Push Operators Out
With the tax increase, effective tax rates for sportsbooks could reach up to 60%, making Illinois one of the most expensive states for legal betting operations.
Smaller operators like Circa Sports are now reconsidering whether to continue doing business in the state. Circa owner Derek Stevens stated:
“I don’t know if sports betting in Illinois is viable in the current environment.”
This reflects growing concerns that only large operators will be able to survive under the new tax rules, potentially limiting consumer choice and competition.
Not the First Time DraftKings Tried to Pass on Costs
In 2024, DraftKings considered a “gaming tax surcharge” on winning bets in some states, including Illinois. But after customer backlash, the idea was dropped.
The new 50-cent fee marks a shift toward flat charges per bet, which could be simpler to implement but still controversial among users.
Wider Impact on U.S. Sports Betting
Illinois is one of several states rethinking how to tax the booming online gambling industry. If the per-bet fee system becomes common, other states may follow, especially as they look for new sources of revenue.
This situation could also encourage bettors to seek unregulated offshore sites, which offer lower costs but lack consumer protections, like safe payment options or responsible gambling tools.
Also Read: Bet365 Founder Denise Coates: Her Massive Net Worth
