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FanDuel Adds $0.50 Fee in Illinois Over New State Tax Hike
Flutter Entertainment has confirmed that FanDuel will add a $0.50 surcharge per bet in Illinois, starting September 1, 2025, following a new state-imposed betting transaction tax.
Starting July 1, Illinois State will implement a fee per bet on all sports bets. In response, Flutter Entertainment announced that FanDuel will introduce a $0.50 transaction fee per bet starting September 1. The decision directly addresses the increased operational costs and the betting tax rate.
Peter Jackson, CEO of Flutter Entertainment, shared in a statement:
“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.”
Flutter stated that if the state changes its decision and takes out the transaction fee, the $0.50 charge will be immediately removed. Flutter sees a need for balance on tax rates that allow states to generate revenue, while letting operators provide strong customer offerings and effective competition.
The sports betting industry also voiced criticism on the tax raise, describing it as economically harmful and structurally flawed.
Derek Stevens, CEO of Circa Sports, publicly commented on the policy during the Vegas Stats & Information Network’s “Follow the Money” show. He characterized the state’s action as “not a good, logical, well-thought-out design.” He also mentioned the potential business consequences for companies like Circa. The fee structure will affect sportsbooks that offer low-stakes options or that operate with smaller profit margins. Stevens believes that the new tax system may compel sportsbooks to implement minimum bet requirements, potentially starting at $10, to maintain financial viability.
Peter Jackson, CEO of Flutter Entertainment, added:
“We also believe the introduction of the Illinois Transaction 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.”
Operators broadly share concerns on this tax structure, believing that it will push bettors towards unregulated betting markets that don’t include such fees.
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