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Illinois will soon see a new cost added to online sports bets, and FanDuel has announced how it plans to respond. Starting this fall, users in the state will face a new fee on every bet placed.
The update came through a press release issued today by Flutter Entertainment, the parent company of FanDuel. It confirmed the platform’s plan to introduce a flat fee on wagers placed in Illinois.
The change follows a decision by Illinois lawmakers to implement a new transaction charge on all online sports bets starting July 1, 2025. This fee applies to licensed operators and comes on top of the betting tax hike already introduced in 2024. That earlier increase had already pushed up operating expenses across the industry.
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FanDuel, Flutter’s leading brand in the United States, confirmed it will begin applying a $0.50 transaction fee to every wager placed on its platform by Illinois users. The change will go into effect on September 1, roughly two months after the new state fee kicks in.
After the 2024 tax hike, FanDuel absorbed the extra cost without passing it to users. However, the addition of this new transaction fee created a cost burden that the company said could no longer be managed without charging customers directly.
Flutter CEO Peter Jackson addressed the situation, saying, “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.” He also expressed concerns that casual bettors could be discouraged and that some might turn to unregulated websites that do not pay local taxes or follow consumer protection rules.
“We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state,” Jackson added.
FanDuel confirmed that it would immediately remove the transaction fee if Illinois repeals the law in the future. Until then, Illinois users will see the extra charge applied to every bet they place.