DraftKings releases statement on Illinois sports wagering tax
Flutter, the owner and operator of FanDuel, announced its intention to impose a $0.50 transaction fee for all bets placed in Illinois on June 10 in response to the state’s decision.
Key Points
- Within the statement, DraftKings said it “anticipates taking action” to either help offset the potential losses, such as what Flutter has chosen to do, or lower the tax for operators
- Fellow operators have also commented on the Illinois news, with Circa Sports Director of Operations Jeffrey Benson stating regulators and politicians are to blame
Following a decision by Illinois lawmakers to impose a $0.25 tax on the first 20 million bets placed through a respective operator each year, and a $0.50 tax for all additional wagers, DraftKings has released an official statement in response to the legislation.
“In response to the recent and prior mobile sports wagering tax increases in Illinois, DraftKings anticipates taking action and expects to share more information soon,” the operator said.
As part of its own response on June 10, Flutter Entertainment, the owner and operator of FanDuel, announced its intention to impose a $0.50 transaction fee for all bets placed in Illinois.
“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 Entertainment CEO Peter Jackson said.
“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. ”
Fellow operators have not shied away from issuing statements as well, with Circa Sports Director of Operations Jeffrey Benson posting a message on his X (formerly Twitter) account to seemingly defend Flutter’s decision, having said, “Don’t blame FanDuel. Blame the regulators and politicians.”
Good to know: DraftKings sportsbook partnered with UFC on June 4 for a new responsible gaming advertisement campaign, featuring a 15-second and 30-second spot which premiered during the ceremonial weigh-in for UFC 316
Jackson also warned Illinois lawmakers of the effect Flutter’s decision could have on unregulated activity, believing the new 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.”
A spokesperson for the Illinois Gaming Board commented on Flutter’s decision, stating the Board is “reviewing FanDuel’s proposed September transaction fee,” but failed to provide any further information.
For additional context, FanDuel accepted 164 million wagers in Illinois from April 2024 through March 2025, meaning the $0.50 transaction fee would have generated $82m of new revenue for the operator.
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