FanDuel has added a 50-cent surcharge on all wagers in Illinois to offset the high taxes imposed by the state. DraftKings may follow suit, and experts predict this move will translate into significant revenue for both companies.
The new tax, which applies to each wager accepted by sportsbooks, disproportionately affects FanDuel and DraftKings, who combined account for 75% of the Illinois market. The tax rate is 25 cents per bet for the first 20 million wagers, increasing to 50 cents per wager thereafter.
FanDuel’s CEO Peter Jackson expressed concerns that the tax will negatively impact lower-stakes players and motivate gamblers to seek out unregulated operators that don’t pay taxes. He noted that a balanced tax rate can enable sportsbooks to provide the best experience for customers while maximizing market growth and revenue for states.
As other state legislatures consider raising their own tax rates, this move highlights the ongoing debate over gaming tax rates in the US. With DraftKings also signaling its intention to share more information soon, it remains to be seen how this development will impact the Illinois sports betting market.
Source: https://www.cnbc.com/2025/06/10/fanduel-draftkings-surcharge-illinois-taxes.html