DraftKings Levies Fee on Illinois Wagers as State Taxes Rise

It's a response to the new increase in taxation signed into law by the Illinois state legislature recently.

Ziv Chen

Last updated: June 13, 2025 2:39 PM EDT • 2 min read

DraftKings Levies Fee on Illinois Wagers as State Taxes Rise — Pictured: In this photo illustration, the DraftKings Inc. logo is seen displayed on a laptop screen. Photo by Rafael Henrique / SOPA Images / Sipa USA.

DraftKings will begin charging 50 cents for every online and mobile sports bet in Illinois starting Sept. 1. This is in response to the new increase in taxation signed into law by the Illinois state legislature recently, which includes the latest 25 cents per-bet charge for the first 20 million Tier 1 and Tier 2 bets per operator in each calendar year.

The per-wager levy was included in overhauling the Illinois sports betting taxation system, the second taxation overhaul the state market has experienced in two years. Illinois raised its graduated sportsbook revenue tax rates in July 2024, making it one of the most highly taxed jurisdictions in the US-regulated sportsbook sector.

DraftKings Co-Founder and CEO Jason Robins expressed his disappointment with the tax hike and noted his worry for the future of Illinois’ sports betting market.

“Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources. We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer,” Robins said in a press release.

The extra 50-cent charge will be imposed only on bets on the DraftKings Sportsbook app and website in Illinois. DraftKings clearly states that it is temporary and will be rescinded if the recently enacted law is repealed or modified.

Illinois has remained among the operator's core markets following the state's launch of legalized sports wagering. However, the popular Illinois sports betting app indicated that its sustained investment in the state would be driven by the level of sustainability of the regulatory environment as well as taxation.

Boost Follows FanDuel's Lead

DraftKings' biggest US sportsbook rival, FanDuel, launched an identical 50-cent per-bet charge in Illinois just days before it announced its own.

The decision is indicative of a new approach by larger bookmakers, which previously absorbed state-level taxes and regulatory fees upfront. By charging new expenses directly to consumers, companies are rebalancing their pricing models to respond to the growing cost of operating in central geographies. It may result in fewer new players taking advantage of DraftKings promo codes.

Illinois is among the increasing number of U.S. states considering new or alternative ways of taxing gaming. As additional states update the sports betting tax law, such cost-shifting arrangements could become increasingly prevalent.

Both operators reaffirmed that they favor balanced policies that achieve the state's revenue goals as well as the sustainability of the controlled sport wagering business

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.