FanDuel, owned by Flutter Entertainment, announced a new $0.50 transaction fee on every bet placed in Illinois, effective September 1, 2025. This fee directly offsets the new tax imposed by HB 4951.
According to a statement from Flutter Entertainment, the company decided to pass the tax cost to customers to maintain its financial stability in the state. Flutter emphasized that the fee would be removed immediately if Illinois lawmakers reverse the tax decision.
The company also expressed concern that the tax could drive bettors to unregulated operators, which are not subject to the same tax rules.
The $0.50 per-bet fee will affect all FanDuel users in Illinois, regardless of wager size. For example, a $10 bet will now include an additional $0.50 charge, increasing the cost of betting. This fee could add up quickly for frequent bettors.
Industry analysts estimate that the tax could cost FanDuel approximately $87 million annually before mitigation efforts.
While FanDuel was not the only operator affected, the company was the first to make a change. While Illinois is seeking to increase the money generated for the Illinois General Revenue Fund, being first in the market to add a cost to the customer drew immediate concern.
Flutter CEO Peter Jackson said in the release:
“It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize 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.”
Illinois is one of the largest sports betting markets in the U.S., with significant revenue potential for operators like FanDuel. The state’s decision to implement a per-bet tax reflects a broader trend of increasing taxation on gambling to fund public services.
FanDuel’s fee is a direct response to this policy, but it remains unclear whether other operators will follow suit.
Some analysts suggest that competitors may absorb the tax to remain competitive, potentially giving them an edge in the Illinois market. Flutter has indicated it will monitor the situation and adjust its strategy if the state revises the tax policy.
The introduction of the fee has sparked discussions about the balance between state revenue goals and the affordability of legal sports betting. FanDuel’s move highlights the challenges operators face in high-tax environments. Other industries that face tax hikes include tobacco products and retailers conducting out-of-state business, so this is possibly the tip of a larger iceberg for consumers.
As the industry evolves, Illinois bettors may see further changes in how sportsbooks manage rising costs. For now, FanDuel customers should prepare for the new fee starting in September 2025 and consider its impact on their betting habits.
