ILLINOIS — Starting July 1, Illinois will implement a new tax on sports betting platforms, charging 25¢ per bet for the first 20 million wagers, then 50¢ per bet after that — a move expected to significantly raise the cost of betting for users statewide.
FanDuel announced it will pass the cost to users by adding a 50¢ transaction fee per wager starting September 1, as revealed in a report by Front Office Sports.
Meanwhile, DraftKings is preparing legal action, citing major concerns over the structure and fairness of the tax. The company has not detailed whether the challenge would involve lawsuits or lobbying.
Sports Betting Alliance Deems Legislation Harmful And Possibly Illegal
The Sports Betting Alliance, which includes both operators, warned that the new tax is “punitive and constitutionally suspect.” The group believes the legislation could backfire by making legal sportsbooks less competitive, potentially driving users back to illegal betting markets.
They also argued that the policy could significantly shrink Illinois’ betting economy, lowering tax revenue rather than increasing it.
Low-Stakes Bettors Could Feel The Impact Most
With sportsbooks relying heavily on casual $5–$10 bettors, critics say the per-wager tax disproportionately hurts recreational users. The result could be fewer active users, smaller promotions, and weaker overall engagement — especially in cities like Chicago, where rideshare, tax, and betting laws already fluctuate regularly.
Concerns Grow Over Illegal Market Resurgence
Experts warn the tax may drive players back to underground betting, fantasy pools, or foreign-run apps. Legal sportsbooks operate under strict state oversight, while illicit channels pose risks to consumer safety, payment security, and accountability.
Do You Support Illinois’ New Sports Betting Tax?
Will it stabilize long-term revenue or damage the legal gaming market? Drop your thoughts now on ChicagoSuburbanFamily.com.
