FanDuel has pushed back against Illinois’ new budget, which imposes a 25-cent tax on sportsbook operators for each of their first 20 million bets and 50 cents per bet thereafter. In response, Flutter Entertainment, the parent company behind FanDuel, is introducing its own 50-cent per bet fee starting September 1, 2025.
Flutter CEO Peter Jackson claims the new fee will be dropped if Illinois reverses its tax decision. Jackson argues that the optimal level for gaming tax rates enables operators to provide a good experience for customers while maximizing market growth and revenue for states. However, he also warns that the new fee could drive some customers to unregulated operators, which do not contribute to state taxes or offer the same levels of customer protection.
As Illinois’ new budget was recently approved, The Ringer and Barstool Sports’ Dan “Big Cat” Katz had spoken out against the tax. With FanDuel now taking a stand, it seems likely that other sportsbooks will follow suit. It remains to be seen whether the public backlash will prompt Illinois to reconsider its approach on the new tax.
Source: https://awfulannouncing.com/fanduel/50-cent-fee-all-bets.html