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Illinois is bringing a new betting tax structure into effect, and DraftKings is preparing to respond. The company has made it clear that the added financial pressure from lawmakers is pushing it to reconsider how it operates in the state.
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DraftKings released a statement acknowledging the change and signaled that it would not stand by quietly. “In response to the recent and prior mobile sports wagering tax increases in Illinois, DraftKings anticipates taking action and expects to share more information soon,” the operator said.
The newly approved law imposes a tiered transaction tax on mobile wagers in Illinois. Operators are required to pay $0.25 per bet for up to 20 million wagers annually. Once that limit is passed, the fee doubles to $0.50 for each additional bet. This structure affects major sportsbooks with large betting volumes the most—like DraftKings.
Before this update, Illinois already increased the tax on operator revenue in 2024, and this new fee adds another layer of cost. DraftKings, which handles a large number of bets across the state, could soon face an increase in annual operating expenses if it chooses to absorb the cost—or it could pass those expenses on to users.
The company has not yet said whether it will introduce a fee for customers, change its offers, or adjust operations. However, its tone suggests that users can expect an update soon.
Meanwhile, FanDuel has already confirmed how it will handle the tax increase. Flutter Entertainment, which owns FanDuel, announced that Illinois users will be charged a $0.50 fee on every wager starting later this year.
Flutter CEO Peter Jackson explained, “It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize revenue for states over time.”