DraftKings Imposes Surcharge on Bets Placed in Illinois, Mirroring FanDuel's Move
Unfettered Chat:Illinois sports fans, brace yourselves! DraftKings, following in the footsteps of FanDuel, is slapping a $0.50 fee on each wager starting September 1, 2025. This move comes hot on the heels of a new per-bet tax that the Illinois legislature shoved through at the end of May.
So why the additional hit to your wallet? Well, these big boys of mobile wagering in the US are giving the middle finger to this fresh tax—a tax that smacks a $0.25 fee on the first 20 million bets a licensee accepts, and a hefty $0.50 on every bet beyond that.
Are you wondering why they're passing these extra costs onto bettors? It's simple; the operators are trying to counter the financial clout of recent tax hikes in Illinois. Over the last two years, the tax rate for sports betting operators has skyrocketed, jumping from a manageable 15% to an eyewatering 40% of gross gaming revenue. And this new, inhospitable environment has got them scratching for ways to offset these soaring tax obligations.
It's also worth noting that there's a niggling fear that these increased costs could lead customers astray, tempting them towards the unregulated, illegal betting sites that don't cough up taxes or offer consumer protections. But should the tax increase be repealed, DraftKings has promised to axe that fee faster than you can say, "Quick Bucks." So keep your fingers crossed!
In light of the escalating taxes on sports betting in Illinois, DraftKings, like FanDuel, might direct sports-betting enthusiasts to alternative finance avenues, such as sports-betting sites operating illegally and without regulation, to counterbalance the financial burden. However, should the tax increase be revoked, DraftKings is prepared to reverse the $0.50 fee on each wager, restoring their competitive edge in the sports-betting market.
