FanDuel and DraftKings to Charge $0.50 Fee on Illinois Bets

by Blake Roberts, June 18, 2025

FanDuel and DraftKings announced a $0.50 transaction fee on all online and mobile bets placed on their platforms in Illinois starting September 1st.

Sportsbooks Respond to the Recent Tax Hike in Illinois

From September 1^st, 2025, FanDuel and DraftKings will charge Illinois bettors a $0.50 transaction fee on all bets. This was officially announced by Flutter Entertainment on Tuesday, June 10th, and by DraftKings Inc. on Thursday, June 12th, and comes in response to the tax reforms introduced in the Prairie State last year.

Under House Bill 1928, starting July 1^st, 2025, sportsbooks must pay a tax of $0.25 per wager on the first 20 million bets placed each fiscal year, increasing to $0.50 per bet for all wagers beyond that threshold. Combined with a progressive revenue tax rate of up to 40%, this is a major blow for the legal betting platforms in the state.

Last year, DraftKings and FanDuel were the first sports betting operators to express concerns over the Ilinois tax hike. The graduated tax rate disproportionately affects the largest companies with the highest revenue streams. Being the two leaders on the market, DraftKings and FanDuel are expected to face significant financial pressure compared to smaller competitors.

Official Statements from FanDuel and DraftKings

In an official press release, Flutter’s CEO, Peter Jackson, expressed his disappointment with Illinois legislators and raised concerns over the tax hike’s impact on low rollers and regulated operators on the market. Another valid note discussed an unwanted scenario in which Illinois-based customers would turn to unlicensed platforms.

“…We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state. We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators…” – Peter Jackson, Flutter CEO

Pretty much the same issues were also flagged a couple of days later in an official release by DraftKings. Jason Robins, CEO and Co-Founder of the company, noted the brand’s tax rate has almost tripled in the last two years. Both companies expressed their readiness to waive the additional fee if the decision is reversed. Currently, however, this doesn’t seem to be a likely outcome.

“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.” – Jason Robins, Chief Executive Officer and Co-Founder of DraftKings

Lawmakers and gambling regulators in Illinois will have to consider all possible scenarios and prepare accordingly. The main priority should be the safety of bettors in the state, which could be compromised if the conditions offered by licensed sportsbooks become disadvantageous enough to steer them toward illegal bookmakers.