Caesars Sportsbook Adds $0.25 Tax on Illinois Online Bets

Sports bettors in Illinois will soon notice a new cost attached to every online wager. Starting September 1, Caesars Sportsbook will introduce a $0.25 tax per online bet after lawmakers approved House Bill 1928 earlier this year.

Good to know

• The new tax starts at $0.25 per wager, but it doubles to $0.50 once an operator surpasses 20 million bets.
• Caesars’ in-person wagers at Grand Victoria Casino Elgin, Harrah’s Joliet, and Harrah’s Metropolis are not subject to the new tax.
• Bonus bets and Reward Credits remain tax-free, but all cash bets online will include the fee.

Caesars confirmed the change in a statement to its Illinois customers:

“Following the decision made by the Illinois General Assembly on May 31, 2025, a $0.25 wager tax has been applied to each online sports wager placed in the State of Illinois. Effective September 1, 2025 this $0.25 wager tax will be applied to each online wager placed on Caesars Sportsbook.”

The company clarified that the tax will apply across standard bets, including profit boosts. Refunds will be issued if a wager is canceled or voided. Bets placed with bonus credits won’t see the added charge.

Other operators are also adjusting. DraftKings and FanDuel, two of the largest sportsbooks in the state, are expected to jump directly to a $0.50 per bet tax, given their high volume of wagers. Meanwhile, Fanatics will apply a $0.25 per bet fee starting in fall 2025.

Not all companies are taking the same path. To offset the cost, several sportsbooks have introduced minimum bet thresholds. BetRivers set its floor at $1 per wager, while Circa Sports has gone as high as $10 for Illinois customers. BetMGM, ESPN Bet, and Hard Rock Bet are also implementing new minimums to balance the impact of the state-imposed tax.