DraftKings has announced it will place a $0.50 customer surcharge on all online and mobile bets in Illinois to mitigate the new transaction fee, due to come into effect on 1 July.
The New York-listed operator has followed its main rival FanDuel in implementing the tax, with parent company Flutter Entertainment having announced identical plans earlier this week.
Like FanDuel, DraftKings will begin charging its users the $0.50 fee on every wager from 1 September 2025.
The reaction comes after the Illinois state budget was approved in May. A last-minute addition included a $0.25 charge for each operator on the first 20 million sports bet accepted in Illinois each year.
The transaction fee will then rise to $0.50 on all bets placed after that point.
Following in FanDuel’s footsteps, DraftKings confirmed in a statement that should the new fee be removed, then the $0.50 transaction cost for customers would be immediately axed.
The statement read: “DraftKings continues to support collaborative policymaking that works for the state and allows for the long-term sustainability of the industry.”
The new Illinois transaction fee comes less than a year after the state overhauled its tax rate imposed on operators.
From 1 July 2024, operators were subject to a progressive tax of 20% to 40%, based on annual revenues.
The framework replaced the previous flat 15% rate, with DraftKings and FanDuel the only two of Illinois’ 10 licensed online sportsbooks to fall into the highest 40% bracket.
Last year, DraftKings had planned to introduce a gaming tax surcharge on customers in states with GGR tax rates above 20%, only to abandon the decision two weeks later.
Jason Robins, DraftKings CEO, echoed comments previously made by Flutter boss Peter Jackson, saying he was “disappointed” that lawmakers in Illinois had applied the transaction fee.
He remarked: “Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation and a sustained investment in responsible gaming tools and resources.
“We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry.
“Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”
The Illinois Gaming Board reported that operators collected almost $92m in revenue during April, while handle amounted to $1.1bn.
The post DraftKings joins FanDuel in adding $0.50 charge to bets in Illinois first appeared on EGR Intel.
Operator says it is “disappointed” with lawmakers in the state over new per-bet transaction fee, as CEO sounds alarm over potential growth of the black market
The post DraftKings joins FanDuel in adding $0.50 charge to bets in Illinois first appeared on EGR Intel.