FanDuel adds 50-cent surcharge to Illinois bets to offset new taxes

From CNBC: 2025-06-10 11:55:00

FanDuel introduces a new 50-cent surcharge on all wagers in Illinois to offset new taxes. DraftKings may follow suit. The tax applies to each bet, starting at 25 cents per bet for the first 20 million, then 50 cents per bet. FanDuel and DraftKings hold 75% of the Illinois sports betting market.

The new fee is expected to bring in $79 million in 2026 revenue for DraftKings and $86 million for FanDuel. Illinois also has a progressive tax, leaving top sportsbooks paying a 40% tax rate, up from 15% before. DraftKings initially planned to pass costs to consumers but reversed course.

Flutter CEO Peter Jackson criticizes the Illinois tax, saying it disproportionately affects lower wagering customers. Several states are considering raising their tax rates, potentially impacting the industry further. Jackson warns that the tax may drive customers to unregulated operators without the same consumer protection.

Jackson emphasizes the importance of finding an optimal gaming tax rate to maintain market growth and revenue for states. He stresses that the current tax structure unfairly penalizes companies that have invested in growing the regulated market, particularly impacting recreational customers making small bets.



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