Fanatics to implement per bet transaction fee in Illinois
The operator has confirmed the decision reflects the ‘high cost’ of conducting business throughout the state, similar to decisions already made by FanDuel and DraftKings.
Key Points
- Fanatics Betting and Gaming users will be charged $0.25 for all bets placed in Illinois, equal to the fees Illinois lawmakers will begin enforcing upon sportsbooks
- If an operator were to surpass the 20m wager mark throughout the year, it will then be charged a $0.50 fee for all bets placed thereafter
Fanatics Betting and Gaming has chosen to institute a $0.25 per bet transaction fee for all wagers placed within Illinois as a response to state lawmakers passing legislation that will enforce a similar fee on all operators for the first 20m bets placed by users.
The operator now becomes the third sportsbook currently live in Illinois to enforce its own per bet transaction fee on players, joining DraftKings and FanDuel which are implementing fees of $0.50 for all bets placed in the state. Fanatics confirmed the decision reflects the “high cost” of operating throughout Illinois, and will officially begin charging users in the fall of 2025.
While Fanatics will presumably be unaffected by Illinois’ fee rising to $0.50 per wager for any bets placed following the first 20m accepted by an operator, both DraftKings and FanDuel’s owner Flutter Entertainment chose to counteract the measure with an increased fee.
“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. 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,” Flutter CEO Peter Jackson said.
“We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”
Good to know: Bragg Gaming expanded its US content footprint by partnering with Fanatics Casino on July 3 for a multi-state launch of its full catalogue of games and RGS technology
DraftKings Co-Founder and CEO Jason Robins also commented on the decision, having said, “Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation and a sustained investment in responsible gaming tools and resources.
“We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”
Both DraftKings and FanDuel would go on to state that if Illinois lawmakers were to not go through with the newly approved state budget, each operator would immediately cease enforcing the $0.50 per bet fee.
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