DraftKings to Charge Transaction Fee in Illinois Following New Tax Law

DraftKings, following in the footsteps of its major competitor FanDuel, will also charge $0.50 in transaction fees per online bet placed in Illinois. The gambling company deems this necessary due to a new tax measure being introduced in the American state.

The recently approved budget plan for Illinois stipulates that gambling companies must now pay $0.25 in tax per bet on the first $20 million in monthly revenue. For bets exceeding that limit, the rate is doubled. This new levy is in addition to the previously introduced progressive gambling tax based on the adjusted gross revenue (AGR), which in Illinois can reach up to 40% for market leaders.

To cover these costs, DraftKings will now charge a $0.50 transaction fee per online bet placed, as noted by iGB. DraftKings is following the example of bookmaker FanDuel. FanDuel announced last week that it would start charging transaction fees as of September 1st. Together, the two providers account for more than 75% of the market share in the state.

CEO Jason Robins of DraftKings is highly critical of the new measure. He warns that this will drive players to the illegal gambling market:

“We are very concerned about what this will do to the legal, regulated industry. Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and offers none of the consumer protections that regulated operators do.”

Jason Robins, CEO DraftKings

Like FanDuel, DraftKings states that the transaction fees will disappear immediately if Illinois reverses the tax measure.

DraftKings Previously Reversed Course on a Similar Measure

In 2024, DraftKings previously attempted to pass on part of the cost increase to players by introducing a surcharge on payouts in states with high tax rates, including Illinois. However, that plan was quickly withdrawn after other operators, including FanDuel, indicated that they would not participate.

This time, it is DraftKings that is following FanDuel’s lead. According to Flutter, the parent company of FanDuel, the measure primarily affects recreational players and encourages players to switch to illegal online casinos.

Lead photo by Darren McCollester/Getty Images for DraftKings via DraftKings Media Assets.



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