FanDuel to add fee on Illinois bets starting this year

Illinois lawmakers pass $55B budget with new taxes on vaping, sports gambling

State lawmakers passed the budget for the next fiscal year, meeting their midnight deadline over the weekend.

CHICAGO - FanDuel customers in Illinois will soon see a new $0.50 fee added to each bet they place, part of a larger industry reaction to recent tax changes passed by the state.

What we know:

Flutter Entertainment, FanDuel’s parent company and one of the world’s largest online betting firms, announced that beginning Sept. 1, it will start charging a $0.50 fee per wager on FanDuel in Illinois.

The move comes in response to a new Illinois Transaction Fee, which takes effect July 1. The fee requires licensed betting platforms to pay the state for every wager placed—essentially raising operating costs across the board.

Flutter said it initially absorbed a 2024 increase in Illinois betting tax rates without passing the cost to customers. But with this new fee, the company says it can’t keep doing that.

What they're saying:

Flutter CEO Peter Jackson criticized the Illinois Transaction Fee, saying it could have unintended consequences, such as pushing customers toward unregulated operators, which would mean less state revenue and fewer customer protections.

"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," Jackson said in a statement.

Flutter said it would cancel the charge if the state reverses the new policy, but there’s no indication Illinois lawmakers are considering that.

What we don't know:

It’s unclear if other betting platforms in Illinois plan to do the same thing as FanDuel.