• Loading stock data...
Friday, July 25, 2025

FanDuel, DraftKings Add Illinois Transaction Fee in Response to New Tax

FanDuel will charge bettors in Illinois 50 cents per wager after new taxes passed by Illinois.

Fanduel
The Cincinnati Enquirer

FanDuel has issued an aggressive response to new sports betting taxes recently passed in Illinois. 

The sportsbook’s parent company Flutter announced Tuesday morning that beginning Sept. 1 each bet made on FanDuel will be subject to a 50-cent transaction fee. Last week, with little notice, Illinois passed new taxes on sportsbooks in the middle of the night subjecting them to a 25-cent tax for the first 20 million bets and 50 cents per bet thereafter. 

“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,” Flutter CEO Peter Jackson said in a statement. “We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state.”

On Thursday, DraftKings announced it was following suit and adding its own 50-cent transaction fee.

There are a lot of people who bet small bets and/or use longshot parlays effectively as lottery tickets. For someone who makes $2 wagers, the new fee is a 25% tax on every bet. 

In his statement, Jackson also expressed concern the new taxes would push gamblers to unregulated offshore markets with less consumer protection. 

By publicizing the transaction fees, FanDuel is essentially letting its customers know it’s a separate cost on them, imposed by the state. It remains to be seen whether other operators will follow suit, but given that FanDuel is a bellwether in the industry, it would be a relatively safe bet. 

Last year, in high-tax states like Illinois in New York, DraftKings had planned to implement a winners’ “surcharge,” but walked it back after widespread backlash.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jan 21, 2024; Philadelphia, Pennsylvania, USA; Philadelphia Flyers goaltender Samuel Ersson (33) and goaltender Carter Hart (79) watch from the bench against the Ottawa Senators during the third period at Wells Fargo Center.

NHL, NHLPA At Odds Over Five Acquitted Players From Hockey Canada Trial

The league is indefinitely barring the players despite the judge’s acquittal.
President Donald Trump speaks during the American 250 kickoff event on July 3, 2025, at the Iowa State Fairgrouds.

Trump Signs Executive Order on College Sports Pay

The order marks Trump’s first foray into legislating college sports compensation.
Michael Johnson
exclusive

Michael Johnson Says Investor Pulling Out Caused Grand Slam Track’s ‘Major, Major..

The investor walked away from an eight-figure term sheet, a source says.

Featured Today

Ryan Field Construction
exclusive

First Look Inside Northwestern’s $862 Million New Ryan Field

Five big things FOS learned on our exclusive stadium tour.
Jul 21, 2024; Ayrshire, SCT; Xander Schauffele celebrates with Claret Jug after winning the Open Championship golf tournament at Royal Troon.
July 17, 2025

The Boozy History and Traditions of The Open’s Claret Jug

The Open awards the world’s most famous wine decanter.
2025 PDC World Darts Championship Final - Luke Littler vs Michael Van Gerwen
July 16, 2025

A Teen Darts Prodigy Is Becoming Bigger Than the Game Itself

Luke ‘The Nuke’ Littler is cashing in on his devastatingly accurate shot.
May 31, 2025; Philadelphia, PA, USA; Sydney McLaughin-Levrone (USA) reacts before the women's 100m hurdles during the Grand Slam Track Philadelphia at Franklin Field
exclusive
July 13, 2025

Track’s New Money Is Running Into Old Problems

The sport’s big-money era has hit some speed bumps in 2025.
Polymarket

Polymarket Set to Become Legal in U.S. After Buying Small Exchange

Derivatives exchange QCX was recently licensed by the CFTC.
Mar 31, 2025; Washington, District of Columbia, USA; Miami Heat guard Terry Rozier (2) drives to the basket against Washington Wizards guard AJ Johnson (5) during the first quarter at Capital One Arena.
July 16, 2025

Terry Rozier’s Attorney Confirms He’s Still Under Federal Gambling Probe

Rozier finished the season playing for the Heat despite the federal probe.
Jun 9, 2025; Cleveland, Ohio, USA; Cleveland Guardians starting pitcher Luis Ortiz (45) reacts after giving up a home run during the fourth inning against the Cincinnati Reds at Progressive Field.
July 18, 2025

MLB Pitcher’s Paid Leave Extended Through August As Betting Probe Continues

Leagues have been dealing with a host of sports betting issues.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
The Department of Justice logo on a podium at the Louisville, Kentucky office. July 1, 2025
July 16, 2025

Prediction Market Platform Polymarket Says It Escaped Federal Probe

Prediction markets are having a moment.
DraftKings
exclusive
July 14, 2025

DraftKings in Talks to Acquire Prediction Market Railbird Exchange

Sportsbooks and prediction markets are becoming increasingly intertwined.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
July 11, 2025

Flutter Acquires Full Ownership of FanDuel in $1.75B Deal With Boyd Gaming

FanDuel just got a $31 billion price tag.
Mar 16, 2024; Las Vegas, NV, USA; The BetMGM Sportsbook at the Mandalay Bay resort and casino.
July 11, 2025

Support Grows to Repeal Gambling Tax in Trump Budget Bill

A new bill has been introduced in the Senate.