DraftKings to impose transaction fee throughout Illinois
The decision comes in response to state lawmakers choosing to increase the tax on sports wagering for operators such as DraftKings and FanDuel.
Key Points
- Flutter, the owner and operator of FanDuel, announced its intention to charge a similar $0.50 transaction fee on all bets placed in Illinois on June 10
- DraftKings had previously released a statement regarding the tax increase, saying it “anticipate(d) taking action” prior to its own transaction fee going into effect
DraftKings sportsbook will begin imposing a $0.50 transaction fee for all mobile and online sports wagers placed in Illinois following a similar decision made by Flutter, the owner of FanDuel, in response to lawmakers recently increasing the tax on sports wagering for operators.
“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,” DraftKings Co-Founder and CEO Jason Robins said.
“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.”
The operator went on to state it would “immediately” remove the Illinois-specific per wager transaction fee if the legislation were to be repealed. House Bill 1928 is set to introduce a $0.25 per wager tax for the first 20 million wagers taken by a respective sportsbook in the state, increasing to $0.50 per wager for all additional bets.
Speaking on its own transaction fee decision, Flutter CEO Peter Jackson stated: “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.
Good to know: DraftKings Casino introduced Light & Wonder slot title Huff N’ More Puff to its digital gaming collection on June 5, featuring a launch in Connecticut, Michigan, New Jersey, Ontario, Pennsylvania and West Virginia
“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.”
The DraftKings sportsbook per wager transaction fee will go into effect on September 1, 2025, as the operator stated it “continues to support collaborative policymaking that works for the state and allows for the long-term sustainability of the industry.”
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