CHICAGO – FanDuel has announced a new 50-cent fee on all bets placed in Illinois starting September 1, 2025. This move comes in response to a recent state budget decision imposing a tax on sportsbook operators.
Breaking: Illinois’ New Tax Sparks Immediate Industry Reaction
The state of Illinois recently passed a budget that taxes sportsbook operators 25 cents for each of the first 20 million bets and 50 cents per bet thereafter. In response, FanDuel’s parent company, Flutter Entertainment, announced the new fee for Illinois customers, citing increased operational costs.
“This decision reflects the significant increase in the cost of operating in Illinois driven by the new Illinois Transaction Fee,” stated Flutter in a press release.
Immediate Impact on Customers and Operators
FanDuel’s decision to impose the fee is a direct response to the state’s new tax policy. The company has indicated that the fee will be rescinded if Illinois reverses its course on the tax.
Flutter CEO Peter Jackson expressed concern over the new tax’s potential effects, highlighting how it might impact both customers and the market.
“It is important to recognize that 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,” Jackson stated.
Industry Response: Concerns Over Unregulated Operators
Jackson further warned that the new fee could drive Illinois-based customers to unregulated operators, which do not contribute tax revenue to the state and lack the same customer protections.
“We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators,” he added.
By the Numbers: Key Statistics and Reactions
- 25 cents tax on the first 20 million bets
- 50 cents tax on subsequent bets
- FanDuel’s 50-cent fee effective September 1, 2025
The announcement comes just over a week after Illinois passed its new state budget. The tax has already faced criticism from various quarters, including media outlets sponsored by major sportsbooks.
Background Context: A Growing Debate
As news of the per bet tax surfaced, The Ringer, sponsored by FanDuel, publicly opposed the transaction fee in a now-deleted post. Similarly, Dan “Big Cat” Katz of Barstool Sports, sponsored by DraftKings, voiced his disapproval via social media.
“Let them know this is BAD. Fill out the form. Don’t let them take away our gambling,” Katz urged in a video post.
What Comes Next: Potential Shifts in the Market
With FanDuel taking a stand, other sportsbooks may soon follow suit. The public’s response and potential backlash could influence Illinois’ decision-making process regarding its tax policy.
FanDuel has already signaled its readiness to drop the fee should Illinois reconsider its tax strategy. Industry watchers will be keenly observing whether this pressure leads to a policy reversal or further adjustments in the market.
Meanwhile, industry experts warn that the timing is particularly significant as the market for sports betting continues to grow and evolve in the United States.
