DraftKings announced it will add a 50-cent transaction fee on all mobile and online bets in Illinois. The fee starts September 1, 2025.
Flutter’s FanDuel platform made a similar move earlier this month. Their 50-cent fee begins July 1, 2025.
Both companies operate major sportsbooks in Illinois. FanDuel holds the largest US market share while DraftKings runs second.
Other operators haven’t announced similar fees yet. RSI previously stated they won’t charge customers these fees.
Illinois lawmakers passed new sports wagering tax increases over the past two years. DraftKings CEO Jason Robins said the state “more than tripled our tax rate” during this period.
The Illinois Transaction Fee also launches July 1. This law taxes operators $0.25 per wager for the first 20 million bets, then $0.50 per wager after that.
The Illinois Gaming Board confirmed operators don’t have to pass these costs to customers. But both major sportsbooks decided to do exactly that.
Robins expressed disappointment with Illinois policymakers. He said the changes hurt the “legal, regulated industry” while helping illegal operators who “pay no taxes or fees.”
FanDuel customers start paying 50 cents per bet on July 1. DraftKings follows with the same fee amount on September 1.
The charges apply to all mobile and online sports wagers. Retail betting wasn’t mentioned in either announcement.
Flutter CEO Peter Jackson said the fee “will disproportionately impact lower wagering recreational customers.” This affects casual bettors more than high-volume players.
DraftKings said it will remove the fee immediately if Illinois repeals the legislation. Flutter hasn’t made similar commitments.
Both CEOs worry customers will move to unregulated operators. Jackson said the fees “will likely motivate some Illinois-based customers to bet with unregulated operators.”
Illegal sportsbooks don’t collect transaction fees or pay state taxes. They also lack consumer protections that licensed operators provide.
The moves set precedent for other states considering similar tax increases. Other operators must now decide whether to absorb costs or charge customers.
FanDuel’s decision carries extra weight given their market position. Smaller operators may feel pressure to match these fees or risk looking expensive by comparison.
DraftKings continues supporting “collaborative policymaking” with Illinois officials. But their fee announcement suggests negotiations haven’t succeeded.
Earlier this month, DraftKings announced a partnership with the UFC as part of its responsible gaming initiative. The collaboration planned multiple RG advertisements to air across various media outlets tied to the UFC.
Featured in the adverts is MMA commentator Jon Anik showcasing DraftKings’ responsible gaming tools via the operator’s app.
DraftKings was previously named UFC’s first-ever Official Sportsbook and Daily Fantasy Partner in the US and Canada back in 2021.
