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DraftKings responds to Illinois tax hike with 50¢ fee per bet
Starting September 1, 2025, as a response to a new tax law in Illinois, DraftKings will charge state users an extra 50 cents for every online and mobile sports bet.
According to the law, Illinois places a tax of 25 cents on the first 20 million bets each year. After that, the tax doubles to 50 cents per bet. For major platforms like DraftKings and FanDuel, which handle millions of bets, this could mean tens of millions in new taxes.
DraftKings CEO Jason Robins criticized the taxation news:
“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. 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.”
Illinois is one of the top states for online sports betting, and the fact that bigger states such as California and Texas have not approved betting yet makes the state more and more appealing for sportsbooks.
DraftKings claims that the fee is vital for the company, as they have to cover the burden, which is currently the highest in the country, 60%. Recently, Flutter Entertainment has also confirmed that FanDuel will add a $0.50 surcharge per bet in Illinois.
DraftKings promised to remove the fee if the state changes course on the new tax. For now, they say they’re willing to work with lawmakers to find a fair solution.
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