FanDuel and DraftKings will begin charging Illinois customers a 50-cent fee on every online wager starting Sept. 1, 2025. This “gaming tax surcharge” is meant to recoup newly passed state levies and will disappear if Illinois reverses the tax law.
BetMGM and Hard Rock have also responded to the gaming tax surcharge with changes of their own as the minimum bet amounts have increased. Starting Wednesday, July 16, every BetMGM Illinois bet will require a $2.50 minimum. Meanwhile, the $2 minimum bet requirement is already live on Hard Rock.
Caesars most recently joined the list of sportsbooks that have responded to the gaming tax surcharges. It is set to charge a 25-cent wager fee to each online bet beginning Sept. 1, 2025. Fanatics started charging the 25-cent fee on every online wager on July 1.
How the State’s Per-Bet Tax Works
Illinois approved a budget in early June that adds a per-wager tax on sports bets, administered by the Illinois Gaming Board. Under the new rules:
$0.25 tax on each of the first 20 million accepted wagers per operator
$0.50 tax on every wager above that 20 million mark
The Illinois Gaming Board, which regulates all licensed sports wagering in the state, will collect these per-bet taxes alongside existing revenue taxes.
Why FanDuel Is Passing on the Cost
FanDuel’s parent company, Flutter Entertainment, said the surcharge offsets the state’s “crippling” per-bet tax — otherwise, its profits would shrink by an estimated $74 million next year. By adding a 50-cent fee, FanDuel aims to protect its marketing budgets and bonus offers from being eroded by higher state taxes.
What This Means for Bettors
Higher Betting Costs: A standard $2 wager will now carry an extra $0.50 fee, a 25% increase in cost per wager.
Strategic Shopping: To find the best value, compare fee structures across different apps.
Watch for Changes: If Illinois lawmakers adjust or repeal the tax, surcharges like FanDuel’s could be rolled back.
Illinois Sportsbooks Without Per-Bet Fees (Some Have Bet Minimum Requirements)
As of now, a few operators, including bet365 and BetMGM, have not announced any per-wager surcharge in Illinois. These platforms continue to absorb the state’s tax without adding an extra fee to customer bets, though BetMGM has instituted a $2.50 minimum bet requirement in Illinois.
Fanatics was initially on that list, but the company later joined FanDuel, DraftKings, and Caesars in charging a per-bet tax for Illinois users, albeit at a lower rate (25 cents as opposed to 50 cents for every online wager).
Looking Ahead
Illinois’s new per-bet tax and resulting surcharges spotlight the tension between state revenue needs and a competitive, customer-friendly market. Key questions include:
Will smaller operators be pushed out by higher tax burdens?
How will bettors adapt if more platforms add similar fees?
Could other states follow Illinois’s model, or will they opt for different tax structures?
In short, betting on other books is going to be cheaper for the time being, so users are likely to avoid FanDuel as their first choice sportsbook.
