DraftKings will introduce a 50-cent transaction fee on all online and mobile sports bets placed in Illinois beginning 1 September.
DraftKings will introduce a $0.50 transaction fee on all online and mobile sports bets placed in Illinois, beginning 1 September.
The decision comes in response to a new wagering tax introduced by the Illinois state legislature, which applies a $0.25 levy on each of the first 20 million sports bets placed annually with licensed operators in the state, and a $0.50 levy on all additional bets.
The new levy comes in addition to a broader increase in the state’s sports betting tax rate, which took effect in 2024.
DraftKings 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.”
The company cited the compounding effect of these changes as a key reason for the new fee, which will apply only to bets placed within Illinois via the DraftKings Sportsbook app or website.
Illinois has been a top market for DraftKings since launching sports betting in the state, but the operator warned that steep tax increases are putting pressure on the regulated betting environment.
Robins expressed concern that high tax burdens on licensed operators may strengthen the unregulated gambling market, which does not face comparable obligations or offer the safeguards of legal platforms.
DraftKings said it supports legislative approaches that ensure the long-term viability of the regulated sports betting industry, while also generating revenue for the state.
The company emphasised that if the recent legislation is reversed, it will immediately cancel the Illinois-specific fee.
Increase follows similar move by FanDuel
The announcement comes just days after FanDuel confirmed a similar $0.50 per wager fee in Illinois.
The near-identical responses from the two largest US sportsbook operators indicate a growing trend of direct cost pass-throughs to consumers as a result of state-level tax changes.
Illinois has become one of the most active US jurisdictions in revisiting its sports betting taxation model.
Continued adjustments to the sector’s tax structure have made Illinois one of the most expensive states in which to operate, triggering a reevaluation of pricing and operational structures among licensed sportsbooks.
The decision to pass costs directly to bettors marks a shift in strategy for major operators, which have historically absorbed tax and regulatory expenses.
Illinois is joining other US states in reevaluating how gambling is taxed, leading operators to rethink their expenses and adjust how they price their offerings.
The decision by FanDuel, and now DraftKings, to introduce a fee per wager stands out as one of the earliest examples of a licensed operator directly passing tax-related costs on to customers.