FanDuel, a leading sportsbook operator, has responded aggressively to new taxes passed in Illinois by introducing a 50-cent transaction fee for all bets made on its platform. The fee will be levied on each bet starting from September 1, applying to both high-stakes and low-wagers.
Flutter’s CEO Peter Jackson stated that the optimal level for gaming tax rates is crucial in enabling operators to provide the best experience for customers while maximizing market growth and revenue for states over time. However, he expressed disappointment with the Illinois Transaction Fee, arguing it will disproportionately affect lower wagering recreational customers and punish operators who have invested heavily in growing the online regulated market.
The new fee poses a 25% tax on every $2 bet, significantly impacting small bettors and those relying on longshot parlays as a form of entertainment. FanDuel’s move is intended to inform its customers that they will bear an additional cost due to state-imposed fees. It remains to be seen whether other operators will follow suit, but given FanDuel’s industry influence, it would be a safe bet.
In the past, DraftKings had planned to implement a winners’ surcharge in high-tax states like Illinois and New York but reconsidered after facing widespread backlash. A spokesperson for DraftKings has yet to respond on whether they will adopt a similar approach.
Source: https://frontofficesports.com/fanduel-adding-illinois-transaction-fee-in-response-to-new-tax