FanDuel Temporarily Halts Illinois Per Bet Fee
Posted on: April 13, 2026, 01:12h.
Last updated on: April 13, 2026, 01:12h.
- The sportsbook operator is waiving its 50-cent surcharge on sports bets placed in Illinois through June 19
- That may be an indication that a bill to repeal the tax has momentum
- The tax went into effect last July
FanDuel, the largest US sportsbook operator, is hitting the pause button on its per bet fee in Illinois. The company announced last week it’s scrapping the 50-cent surcharge through June 19.
The move may be an indication that legislation recently proposed by Rep. Daniel Didech (D), the chairman of the gaming committee, to repeal the state’s latest sports wagering tax increase is gaining momentum. Last year, Illinois rolled out a new levy of 25 cents per wager on an operator’s first 20 million booked bets, with that rate doubling to 50 cents per bet for each wager placed after that initial 20 million.
That tax scheme is particularly onerous for DraftKings and FanDuel because they’re the two operators in Illinois that regularly book 20 million or more bets on an annual basis.
Predictably, the gaming industry widely rebuked the per bet tax because it became law just a year after Illinois went to a progressive tax system on sports wagering that also targeted the largest operators by market share. FanDuel, which is owned by Flutter Entertainment, hasn’t publicly commented on why it halted the per bet fee in Illinois.
Illinois Per Bet Tax Drew Various Responses
After Illinois unveiled its plan to place a tax on each mobile sports bet placed in the state, FanDuel revealed its 50-cent surcharge with DraftKings following suit soon thereafter. Fanatics also rolled out a 25-cent surcharge.
Other operators responded to the state’s tax increase by raising their minimum size, which was better received among bettors than the per wager transaction fees. Illinois was the first state to implement a per bet tax.
Data indicate in the months since the per bet tax went into effect, bettors in the Land of Lincoln are placing fewer wagers, but handle hasn’t materially declined. It’s actually grown modestly, indicating bettors are likely wagering more money while reducing their wagering frequency in response to the transaction costs.
Illinois, Operators in Tough Spots
Illinois needs revenue as highlighted by an estimated deficit of $2.2 to $3.2 billion for fiscal 2026-27. That despite more than 50 tax increases from Gov. J.B. Pritzker (D) since he took office in 2019. That could make it difficult to repeal taxes of any kind.
“The state continues to suffer from weak economic growth, the highest property taxes and the third highest corporate taxes in the nation along with persistent losses of residents and businesses,” according to a February report from Illinois Policy.
Conversely, the sports betting industry needs Illinois, too. It’s the sixth-largest state by population, but it’s third among those with competitive sports wagering markets and executives from some operators have acknowledged the state is important to their long-term growth objectives. On the other hand, a 2025 report from Truist Securities indicates DraftKings and FanDuel would have paid an additional $68 million and $77 million, respectively, in Illinois had the per bet tax been effect for the entire year.
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