FanDuel To Charge Users 50c For Every Bet In Illinois

In a significant move impacting the gambling landscape in Illinois, FanDuel has announced the implementation of a $0.50 transaction fee for every bet placed on its platform. This decision is a direct response to new legislation imposing higher taxes on sports betting operators in the state.

As part of the recent tax structure, Illinois lawmakers have introduced a tiered tax system that charges operators $0.25 for each bet placed, escalating to $0.50 for those receiving over 20 million bets annually. Given FanDuel’s standing as one of the predominant sportsbooks in the U.S., it falls within this higher tax bracket and has opted to transfer this cost to its customer base.

In an official press release, Flutter, the parent company of FanDuel, stated, “Effective September 1, 2025, FanDuel will introduce a new $0.50 transaction fee per bet placed in Illinois. This implementation reflects the substantial increase in operational costs driven by the Illinois Transaction Fee.”

Although the tax is slated to commence on July 1, it requires the endorsement of Governor J.B. Pritzker. Observers speculate that FanDuel’s announcement may serve as a strategic pressure tactic to encourage Pritzker to reconsider the legislative approval. The Sports Betting Alliance (SBA), which includes FanDuel, has actively campaigned against this tax increase, generating significant community feedback, including 77,000 petitions urging the state to halt the proposed tax hike.

Industry Perspectives on the Tax Implications

Flutter CEO Peter Jackson has expressed concerns about the potential ramifications of the new tax, labeling it as “discriminatory, punitive, and constitutionally suspect.” He emphasized the necessity of finding an optimal gaming tax rate that can enhance customer experience, stimulate market growth, and maximize state revenues in the long term.

“This Illinois Transaction Fee disproportionately impacts casual bettors while placing additional burdens on operators who have heavily invested in establishing a regulated market in the state,” Jackson noted. “Moreover, this fee may inadvertently drive customers towards unregulated betting platforms, which do not contribute tax revenues or provide the same level of consumer protection.”

The introduction of a $0.50 fee could deter small-stakes bettors, as the cost associated with a $1 wager would effectively rise to $1.50. Such adjustments may lead users to explore alternative platforms or offshore sportsbooks that offer more competitive odds and enhanced promotions.

Remarkably, even in the absence of a transaction surcharge, unregulated sports betting platforms have been edging close to the revenue generated by regulated sites in Illinois. For instance, regulated sportsbooks, including FanDuel, claimed approximately $1.2 billion in gross revenue, while unregulated operators amassed around $889 million, as outlined in a recent Yield Sec report.

Possible Reactions from Competitors

DraftKings, another major player in the Illinois sports betting market, finds itself subject to the same $0.50 tax per bet due to its substantial market share. Together, FanDuel and DraftKings dominate approximately 75% of the state’s sports betting landscape.

In the previous year, DraftKings proposed a gaming surcharge on winning bets in states with elevated tax rates. However, following backlash from customers, the company reversed its decision. In a statement, DraftKings acknowledged, “We always listen to our customers, and after their feedback, we opted to forgo the gaming tax surcharge. Our commitment lies in providing the best value in the industry for our loyal patrons.”

With the new Illinois tax framework, FanDuel’s introduction of a bet charge may set a precedent for DraftKings to follow suit. A company representative recently indicated, “DraftKings anticipates taking action concerning this issue and will provide further insights soon.”

As the gambling industry continues to evolve, operators must navigate a complex landscape of regulations that can significantly impact both business models and customer engagement. Stakeholders will be keenly observing how these developments unfold and what strategies will be employed to maintain competitiveness in the face of increasing regulatory challenges.

Adam Roarty brings a wealth of experience as a writer in the gambling sector, having contributed to reputable platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News. He remains focused on emerging trends within the dynamic U.S. betting landscape, covering legislative changes and innovative market developments.