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Flutter Entertainment announced a $0.50 transaction fee for all Illinois bets on June 10. The company owns and operates FanDuel sportsbook.
DraftKings issued a statement saying it “anticipates taking action” in response. The operator didn’t specify what measures it would implement.
Illinois lawmakers imposed the new tax structure earlier this year. The state will charge $0.25 on the first 20 million bets per operator annually.
Jeffrey Benson, Circa Sports Director of Operations, defended Flutter’s decision. He posted on X that people should “blame the regulators and politicians.”
Peter Jackson serves as Flutter Entertainment CEO. He criticised the Illinois tax structure in company statements.
Illinois will charge $0.50 for all additional wagers beyond 20 million per operator. Flutter’s fee matches this higher tax rate exactly.
Jackson said there’s an “optimal level for gaming tax rates” that benefits everyone. He argued the Illinois tax will hurt recreational customers most.
The CEO believes the fee will “disproportionately impact lower wagering recreational customers.” He also said it punishes operators who invested in market growth.
Flutter accepted 164 million wagers in Illinois from April 2024 through March 2025. The $0.50 fee would generate $82 million in new revenue for the operator.
Illinois charges $0.25 on each operator’s first 20 million annual bets. All additional wagers face a $0.50 tax.
Flutter’s transaction fee applies to all Illinois bets regardless of volume. The company didn’t create a tiered structure matching the state tax.
DraftKings expects to share more information about its response soon. The operator mentioned offsetting potential losses or reducing operator taxes.
The Illinois Gaming Board is “reviewing FanDuel’s proposed September transaction fee.” Officials provided no additional details about their assessment.
Jackson warned the fees could drive customers to unregulated operators. These platforms don’t pay Illinois taxes or collect transaction fees.
Unregulated operators also don’t provide the same customer protections as licensed books. Jackson said this could reduce state tax revenue overall.
The fee structure may impact market competition in Illinois. Operators must decide whether to absorb costs or pass them to customers.
DraftKings mentioned potential actions to “lower the tax for operators.” This suggests possible lobbying efforts against the new structure.
Flutter’s decision sets a precedent for other operators facing similar tax increases. The response could influence how companies handle future regulatory changes in other states.
The Illinois Gaming Board’s review may determine whether other operators follow Flutter’s approach.
In May 2025, Flutter released its Q1 2025 financial results, showing positive gains as revenue reached $1.7 billion, up 18% year-over-year, net income hit $335 million, and US iGaming revenue rose 32%.
The results revealed that FanDuel’s sportsbook performance was a key driver of growth, with revenue climbing 15%, supported by an 8% rise in handle to $14.6 billion.
