Key points:
- FanDuel players in Illinois will have to pay $0.50 per bet in transaction fees from 1 July 2025
- The decision follows the introduction of the Illinois Transaction Fee in the state
- Flutter CEO Peter Jackson expressed disappointment in the legislature's decision, stating that the fee "will likely motivate some Illinois-based customers to bet with unregulated operators"
Update: The House Bill 1928 will tax $0.25 per wager for the first 20 million wagers for the sportsbook in the state, with this increasing to $0.50 per wager afterwards. The Illinois Gaming Board confirmed to Gambling Insider that operators are not required to pass this on to customers and doing so "appears to be a FanDuel initiative."
Global operator Flutter has announced that, in Illinois, players using its FanDuel platform will be required to pay a transaction fee of $0.50 per bet. This follows the introduction of the Illinois Transaction Fee by Illinois State Legislature, which is set to go live on 1 July.
On the decision, Flutter CEO Peter Jackson said: “It is important to recognise that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximise market growth and maximise revenue for states over time. 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.
"We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”
Good to know: We spoke to Jackson in this year's edition of the CEO Special
While the conversation regarding the surcharge has come up before, it is still the decision of the operator as to whether the fee is placed on players or the operator. In Q2 2024, DraftKings CEO and CFO Jason Robins and Alan Ellingson said players would "appreciate transparency” of adding the fee to their bet slips, while operators like RSI have stated that they will not be placing such a fee on players.
However, by making this statement, FanDuel (which is the largest sports betting operator in the US by market share) has set a precedent for other operators to follow. Though, whether these fees will cause an uptick in grey market play, or a shift in interest towards operators not charging the fee to players, is yet to be seen.
