Illinois Sports Bettors to Pay New $0.50 Fee on FanDuel Bets

FanDuel users in Illinois will begin paying a $0.50 fee on every bet placed starting July 1, following the state's introduction of the Illinois Transaction Fee. The decision marks a significant moment for the state’s regulated betting market and may influence how other operators respond to the new cost structure.

Flutter Entertainment, the parent company of FanDuel and the largest sports betting operator in the U.S. by market share, announced the fee on Tuesday. The move is a direct response to new legislation passed by the Illinois State Legislature, which allows operators to either absorb the fee or pass it onto players.

Flutter CEO Peter Jackson criticized the measure, calling it “disappointing” and warning of possible unintended consequences. “We believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators,” Jackson said. “These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.” Jackson also pointed to the potential impact on casual bettors, who may be disproportionately affected by the per-bet surcharge.

 

“There is an optimal level for gaming tax rates,” he said, “and this fee punishes the very operators who have invested the most in building a safe, regulated market in Illinois.”

 

The new fee applies to each individual bet placed, not to the size of the wager, making it more burdensome for recreational players placing smaller bets. FanDuel is the first major operator to publicly commit to passing the fee onto users. Its decision contrasts with statements made last year by DraftKings leadership. CEO Jason Robins and CFO Alan Ellingson suggested in Q2 2024 that players would prefer transparency, but stopped short of confirming that the fee would be offloaded onto bettors.

Other operators, including Rush Street Interactive (RSI), have indicated they will not pass the fee on to users. That divergence creates a fragmented landscape for consumers—and a competitive question for the industry.

FanDuel’s decision could create pressure for smaller or less profitable sportsbooks to follow suit. Conversely, some may choose to absorb the cost to maintain customer loyalty, particularly among casual users.

 

Key Points

• Starting July 1, Illinois FanDuel users will pay a $0.50 fee on each bet due to a new state transaction fee.

• Flutter CEO Peter Jackson warned the fee may drive bettors to unregulated operators lacking consumer protections and tax contributions.

• FanDuel is the first major operator to pass this fee directly to players, potentially setting a precedent for others in Illinois.

Uncertain Effects on Market Dynamics

While the legislation allows operators discretion over how the fee is implemented, its long-term impact remains unclear. Analysts and stakeholders are watching closely to see whether the added cost will push users toward unregulated betting sites, where fees and taxes are absent—but so are consumer protections.

Jackson’s remarks hint at a larger debate in the U.S. gaming sector: how to balance tax policy with market competitiveness and consumer experience. Illinois’ transaction fee may serve as a test case for how state-level policy affects both operator strategy and bettor behavior. As July 1 approaches, all eyes will be on whether other sportsbooks adopt similar pricing models—or use FanDuel’s move as a point of differentiation. For Illinois bettors, the immediate reality is clear: every bet on FanDuel will soon cost a little more.