FanDuel Illinois: New 50-Cent Bet Surcharge Explained
- FanDuel is implementing a 50-cent surcharge on every wager placed in Illinois.
- The tax structure in Illinois levies 25 cents per bet for the first 20 million wagers and 50 cents for each wager thereafter.Flutter, FanDuel's parent company, stated the...
- A DraftKings spokesperson said the company anticipates taking action and will release further details soon.
Illinois sports bettors, listen up: fanduel has introduced a 50-cent surcharge on all wagers, a direct response to the state’s new sports betting tax. This critically important shift impacts how you play and, possibly, the revenue generated by the sportsbooks. DraftKings may soon follow suit. The new Illinois tax structure levies 25 cents per bet for the first 20 million wagers, and 50 cents thereafter. News Directory 3 is closely following the ripple effects. Gaming analyst Jordan Bender projects substantial revenue increases for both FanDuel and DraftKings in 2026. Find out more about what Peter Jackson, Flutter Entertainment‘s CEO, has to say. Discover what’s next as other states consider similar tax hikes.
FanDuel Adds Surcharge Amid Illinois Sports Betting Tax Hike
FanDuel is implementing a 50-cent surcharge on every wager placed in Illinois. this move addresses the impact of new state taxes, and DraftKings may soon follow suit in the Illinois sports betting market.
The tax structure in Illinois levies 25 cents per bet for the first 20 million wagers and 50 cents for each wager thereafter.Flutter, FanDuel’s parent company, stated the surcharge will be removed if the state reverses its decision.
A DraftKings spokesperson said the company anticipates taking action and will release further details soon. Together, FanDuel and DraftKings control approximately 75% of the Illinois sports betting market.
Jordan Bender, a gaming analyst, estimates the new transaction fee will generate $79 million in revenue for draftkings in 2026, representing 5.4% of its projected EBITDA. FanDuel’s revenue is projected to increase by $86 million, or about 2% of EBITDA.
Illinois previously passed a progressive tax last year, raising the tax rate for accomplished sportsbooks to 40% from the original 15%.
Flutter Entertainment CEO Peter Jackson expressed disappointment, stating the Illinois transaction fee disproportionately affects smaller wagers and could drive gamblers to unregulated platforms.
“It is indeed critically 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 said.
What’s next
Several other states, including New Jersey, Maryland, Massachusetts, Michigan, and Pennsylvania, are considering raising their tax rates on sports betting.