Fanatics Joins Illinois Surcharge Parade, But at Smaller Rate Than Rivals
Posted on: July 1, 2025, 04:42h.
Last updated on: July 1, 2025, 04:42h.
- Fanatics announced an Illinois surcharge of 25 cents per sports bet
- That’s half what rivals DraftKing, FanDuel said they’ll charge Illinois customers
The list of Illinois sportsbook operators levying surcharges on bets following the state’s recent tax increase is again growing with Fanatics joining the list.
Fanatics Sportsbook, a unit of the privately held sports apparel and collectibles giant, announced it will apply a per bet fee of 25 cents in Illinois after the state in June increased sports betting taxes for the second time in a year. Under the state’s newest online sports wagering tax scheme, operators will pay 25 cents per bet on the first 20 million bets booked.
That rate doubles to 50 cents per wager after the 20 million threshold is exceeded. All operators are subject to the 25-cent levy with analysts and industry observers noting it’s likely only DraftKings and FanDuel will be subject to the 50-cent-per-bet tax.
Fanatics Sportsbook debuted in Illinois in April 2024 and this is the first time the operator has applied a surcharge in any of the states in which it accepts sports wagers.
Fanatics Illinois Surcharge Less Than Competitors
Bettors’ response to DraftKings and FanDuel announcing transaction fees on Illinois mobile sports wagers has been overwhelmingly negative, indicating there’s potential public relations risk for any operator rolling the dice on similar moves.
The major difference between Fanatics and its two aforementioned competitors is that the former’s Illinois per bet transaction fee is 25 cents compared to 50 cents for DraftKings and FanDuel. That’s an obvious difference, but how it plays out in the court of public opinion remains to be seen. DraftKings and FanDuel previously said that if a solution can be reached with Illinois lawmakers, they’ll pull their surcharges, which are scheduled to take effect on Sept. 1.
Customers and industry observers aren’t cutting DraftKings and FanDuel any slack for their responses to the Illinois tax increase and there’s no reason to believe Fanatics will escape those criticisms.
Not surprisingly, operators feel differently. In Illinois, DraftKings and FanDuel framed their surcharges as forced response to flawed policy that’s increasing the already high cost of doing business in the state. Last year, DraftKings floated a four-stat surcharge plan, but ultimately relented after no rivals went along with it. Illinois was part of that quartet.
Speaking of Competitors Following Along…
In addition to DraftKings, Fanatics, and FanDuel, bet365, BetMGM, BetRivers, Caesars, Circa, ESPN Bet, and Hard Rock Bet are the online sportsbooks operating in Illinois.
Analysts have acknowledged the Illinois tax hike could modestly weigh on the earnings before interest, taxes, depreciation, and amortization (EBITDA) of BetMGM, BetRivers parent Rush Street Interactive, and Caesars Sportsbook in the state.
While the earnings pinch is likely true, some analysts speculated that BetMGM and Caesars are unlikely to implement surcharges in the Land of Lincoln because they could possible customer attrition from rivals that do so to potentially gain market share in the state.
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