Published on: April 13, 2026, 01:12h.
Updated on: April 13, 2026, 01:12h.
- The sportsbook provider is eliminating its 50-cent fee on sports bets in Illinois until June 19.
- This could suggest that a proposed bill to repeal the tax might be gaining traction.
- This tax was implemented last July.
FanDuel, the premier US sportsbook giant, has decided to temporarily suspend its per bet fee in Illinois. The company disclosed last week that it will discontinue the 50-cent surcharge up until June 19.
This decision might indicate that recent legislation proposed by Representative Daniel Didech (D), who chairs the gaming committee, aimed at abolishing the state’s recent sports betting tax increase is finding support. Last summer, Illinois implemented a new tax of 25 cents for an operator’s first 20 million placed bets, with the rate increasing to 50 cents for any wager beyond that initial 20 million.
This tax structure is especially burdensome for DraftKings and FanDuel, the two main operators in Illinois that consistently register 20 million or more bets annually.
The gaming sector uniformly criticized the per bet tax following its introduction, as it came into effect just a year after Illinois transitioned to a progressive tax system that also targeted larger market share operators. FanDuel, owned by Flutter Entertainment, has yet to publicly disclose the reasons behind its decision to put a stop to the per bet fee in Illinois.
Reactions to Illinois’ Per Bet Tax
Upon Illinois announcing its per bet tax on mobile sports wagering, FanDuel introduced a 50-cent surcharge, closely followed by DraftKings, while Fanatics introduced a 25-cent fee.
Other operators responded by increasing their minimum bet amount, which received a more favorable reception from bettors compared to the per wager transaction fees. Illinois was the first state to impose such a tax on individual bets.
Data suggests that since the implementation of the per bet tax, bettors in Illinois are placing fewer bets, although total handle has not significantly decreased. In fact, it has shown slight growth, indicating that bettors may be wagering more money but placing fewer bets due to the added costs.
Challenges for Illinois and Sportsbook Operators
Illinois is in need of additional revenue, facing an expected deficit ranging from $2.2 to $3.2 billion for the fiscal year 2026-27, despite over 50 tax increases initiated by Governor J.B. Pritzker (D) since 2019. This financial situation may complicate any attempts to repeal existing taxes.
“The state continues to struggle with sluggish economic growth, the highest property taxes, and the third-largest corporate tax rate in the nation, alongside ongoing losses of residents and businesses,” stated a report from Illinois Policy in February.
Conversely, the sports betting industry also finds Illinois to be a crucial market. It ranks as the sixth largest state by population and third in terms of competitive sports betting markets. Executives from several operators have recognized the state’s significance for their long-term expansion strategies. However, a report from Truist Securities in 2025 indicated that DraftKings and FanDuel would have incurred an additional $68 million and $77 million, respectively, had the per bet tax been applicable throughout the entire year.