- DraftKings will charge a 50-cent fee per Illinois online bet from September 1, 2025, to offset a new 25–50-cent per-bet tax starting July 1.
- The tax, adding $79M annually for DraftKings, follows a 2024 hike to 40%; CEO Jason Robins warns it boosts illegal betting, which took 15% of U.S. bets.
- The fee may push casual bettors to unregulated sites, risking Illinois’ $8.6B market; analysts back DraftKings’ move with a $55 stock target
Why DraftKings Is Adding the Fee
On June 12, 2025, DraftKings announced the fee in response to Illinois’ new per-bet tax, effective July 1, 2025, which charges sportsbooks 25 cents per wager for the first 20 million bets annually and 50 cents thereafter.
This follows a 2024 tax increase from 15% to a tiered 20–40% rate, costing DraftKings $67.9 million in taxes last year. With Illinois’ $8.6 billion betting handle in 2024, DraftKings and FanDuel, the only operators exceeding 20 million bets, face millions in added costs. You can see the pinch: the state’s tax hikes aim to fill a $1 billion budget gap, but operators are passing the burden to bettors.
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Details of the Fee and Tax
The 50-cent fee applies to every online and mobile bet placed on DraftKings’ platform in Illinois, mirroring FanDuel’s earlier move. The state’s new tax could add $79 million annually for DraftKings by 2026, per analyst estimates.
DraftKings’ CEO Jason Robins criticized the tax, warning it fuels unregulated offshore sites, which handled 15% of U.S. bets in 2024. The Sports Betting Alliance, including DraftKings, argues the tax hits small bettors hardest, with a $2 bet facing a 25% markup.
You might notice the fallout: stocks dipped 7% after the tax passed, though DraftKings rose slightly when FanDuel announced its fee first.
Impact on Illinois’ Betting Market
Illinois, a top-three U.S. betting market, saw DraftKings and FanDuel handle over 75% of wagers in 2024, contributing $327 million in taxes. The fee could deter casual bettors, especially those placing $1–$5 bets, potentially pushing them to illegal sites with no consumer protections, per Robins.
For you, this means higher costs on legal platforms like DraftKings, but unregulated sites pose risks like fraud. X posts show bettor anger, with some vowing to switch to offshore books or local bookies. You might ask: will this fee kill Illinois’ legal betting edge?
What’s Next for DraftKings and Bettors
DraftKings pledged to drop the fee if Illinois reverses the tax, but analysts like Citi’s Steven Sheeckutz expect it to offset costs, supporting a “Buy” rating with a $55 stock target. The GGL may face pressure to adjust taxes as operators warn of market shrinkage.
You might be curious about safe betting: stick to licensed platforms like DraftKings or BetRivers, despite fees, to ensure protections. With Illinois’ tax hikes threatening the $8.6 billion market’s growth, 2025 will test whether bettors stay legal or go underground.
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