DraftKings has announced that customers will face a fee for each sports bet placed in Illinois, introducing a $0.50 charge in the state. This decision follows FanDuel’s recent implementation of the same fee for Illinois users. These changes stem from Illinois lawmakers’ addition of a $0.25 or $0.50 fee per bet in the state budget for licensed operators.
DraftKings had previously indicated potential changes in response to new fees in Illinois, though details were not disclosed until now. The $0.50 fee will start on September 1, 2025. DraftKings CEO Jason Robins expressed disappointment over Illinois’ increased tax rate, concerned about its impact on the legal industry, which contrasts with the untaxed and unregulated illegal markets.
If the state repeals its fee, DraftKings will also remove its charge. Last year, a new tiered tax system raised the operators’ rates, and the new fees will further increase their tax burden to as high as 60%, the highest in the U.S.
The Illinois fee will impose a $0.25 charge on the first 20 million online sports bets annually, increasing to $0.50 thereafter. Expected revenue from this new fee is $36 million per year. Governor J.B. Pritzker plans to sign the budget containing this fee.
Previously, DraftKings had considered a similar fee in several states but withdrew plans following customer feedback. The company had intended to offset tax increases by implementing a “gaming tax surcharge” on winning bets in certain states. Although the surcharge was not enacted, it could potentially be revisited in Illinois to address new fees.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com