From Yahoo Finance: 2025-06-10 07:05:00

The largest U.S. online betting operator, FanDuel, will add a 50-cent surcharge on customer bets in Illinois starting in September, in response to the state’s new tax on wagers, hurting dominant players like FanDuel and DraftKings.

FanDuel, holding a 43% share of the U.S. sports betting market, will remove the surcharge if Illinois reverses its decision. Flutter, the owner of FanDuel, did not introduce a charge when Illinois raised tax rates last year, opting to cut marketing or customer offers instead.

Flutter CEO Peter Jackson mentioned that higher taxes could lead to cutting local marketing or moderating customer offers, strategies that offset around 50% of the 2024 Illinois tax rise based on their European market experience.

Despite efforts to absorb last year’s tax hike without impacting customers, Flutter is disappointed by Illinois’ new tax, which will disproportionately affect larger operators. Analysts predict the tax could reduce Flutter’s core profit by $74 million annually without mitigation measures.

Flutter anticipates a 35% year-on-year profit growth to $3.18 billion, with over a third of revenue coming from the expanding U.S. market. CEO Peter Jackson emphasized the importance of optimal gaming tax rates to ensure the best customer experience, market growth, and state revenue.



Read more at Yahoo Finance: Fanduel to add first surcharge to customer bets in Illinois