FanDuel operator announces $0.50 transaction fee per bet in Illinois

Update: The House Bill 1928 will introduce a $0.25 per wager tax for the first 20 million wagers for the sportsbook in the state, with this increasing to $0.50 per wager afterwards. The Illinois Gaming Board confirmed to Gaming America that operators are not required to pass this on to customers and doing so “appears to be a FanDuel initiative.”

Flutter, the owner and operator of FanDuel, has announced its intention to impose a $0.50 transaction fee on all bets placed in Illinois in response to the state’s recently announced sports betting tax hike.  

The tax levy was announced last week following the approval of a new budget by both chambers of Illinois’ state legislature and specified a 25% per wager for operators in the state – rising to 50% once a given operator accepts 20 million bets within a single fiscal year. Indeed, the announcement caused the sudden drop in share price of multiple operators across the US. Further, this move has made the sports betting tax rate in Illinois one of the highest in the country. 

Now, Flutter has specified that it intends to impose a $0.50 transaction fee per bet on its Illinois customers as part of a response to the regulatory change. The FanDuel operator has also stated that, should the Illinois Government decide to reverse its tax levy, the platform will immediately remove the newly specified transaction fee in response.  

Speaking on the development, Flutter CEO, Peter Jackson, said, “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.” 

Good to know: This latest tax levy comes following an additional rise in sports betting taxes imposed by the Illinois Government in 2024 

Jackson continues, “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.” 

Will Underwood

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