CHICAGO — Sports betting in Illinois is about to get more expensive. FanDuel, one of the largest online sportsbooks in the U.S., will begin charging a $0.50 transaction fee on every bet placed in Illinois starting September 1 — a direct response to a new state-imposed per-wager tax aimed at closing a $1 billion budget gap.
State’s New Tax Structure Triggers Backlash
The move stems from a law passed by the Illinois General Assembly on May 31, which includes a graduated tax system requiring sportsbooks to pay $0.25 per wager on their first 20 million annual bets, and $0.50 for every bet after that. This new tax will officially take effect on July 1, pending Gov. J.B. Pritzker’s expected signature.
Only two sportsbooks in Illinois — FanDuel and DraftKings — crossed that 20 million-bet threshold last year, making them primary targets of the tax hike. According to the Chicago Sun-Times, FanDuel took in more than 50 million bets and generated $491 million in revenue in 2024.
FanDuel Responds With Fee Ahead of NFL Season
Peter Jackson, CEO of FanDuel’s parent company Flutter, confirmed that the $0.50 fee will go into effect just ahead of the NFL season, a peak time for sports betting. He stated:
“There is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth, and maximize revenue for states over time.”
FanDuel argues that the fee is necessary to remain competitive and to offset rising tax burdens.
Lawmakers Say Industry Can Handle It
State Sen. Bill Cunningham (D-Chicago), a key legislator behind gaming bills, said the companies “can charge whatever fee they want,” and emphasized that the tax is still reasonable compared to states like New York, which levies a 51% tax rate on betting revenue.
“We do have to be careful that we don’t overtax this and drive activity underground. I feel like we’re getting close to that point, but I don’t think we’ve hit it yet,” Cunningham said.
Despite lobbying from the Sports Betting Alliance — which called the tax “discriminatory, punitive, and constitutionally suspect” — the fee passed with minimal resistance from Democratic lawmakers.
DraftKings Yet to Announce Strategy
A DraftKings spokesperson told the Sun-Times that the company “anticipates taking action” and will announce more details soon. In 2024, DraftKings earned $418 million in profit before paying $100 million in state taxes.
If the company follows FanDuel’s lead, Illinois bettors could face fees from both major platforms.
Billions at Stake as Bettors Bear the Cost
Since launching in 2020, over 1.3 billion individual bets have been placed in Illinois, totaling $48 billion in wagers — an average of $307 wagered every second. The industry has paid hundreds of millions in taxes, with FanDuel alone contributing $118 million in 2024.
Still, critics worry that these fee hikes could push some bettors back to unregulated black-market alternatives.
What Do You Think About the New Per-Bet Fees?
Should companies like FanDuel absorb the tax themselves, or is it fair to pass it on to users? Let us know your thoughts in the comments section at ChicagoSuburbanFamily.com.
