Fanatics Adds Surcharge Fee to Bets in Illinois Lower than DraftKings and FanDuel

The changes at Fanatics and competitors come after Illinois lawmakers raised the taxes on sports betting for a second consecutive year.

Ziv Chen

Last Updated: July 2, 2025 1:56 PM EDT • 2 minute read

Fanatics Adds Surcharge Fee to Bets in Illinois Lower than DraftKings and FanDuel — Pictured: Chicago Cubs outfielder Pete Crow-Armstrong beats out an infield single at Wrigley Field. Photo by David Banks via Imagn Images.

Fanatics is the latest online sportsbook operator in Illinois to add a surcharge to any sports bets on its platforms in the state. Every wager in Illinois will now cost bettors $0.25 along with the value of the bet. The surcharge is lower than the amount charged by rivals FanDuel and DraftKings, which have applied $0.50 surcharges to bets in Illinois.

The changes at Fanatics and competitors come after lawmakers raised the taxes on Illinois sports betting for a second consecutive year. In 2024, lawmakers approved a rise in taxes from 15% to a tiered system where rates varied from 20% to 40%.

The state followed that up by adding a $0.25 charge to every bet an Illinois sports betting app accepts, up to 20 million bets. Every bet after that incurs a $0.50 fee. The second change to the tax system is expected to bring an additional $40 million in revenue for the state.

The new fee at Fanatics is expected to come into force in the fall, a similar timeline to its competitors FanDuel and DraftKings.

Ten online sportsbooks are operating in the state, offering a range of Illinois sportsbook promos. So far, only three have responded to the implementation of the new tax system in Illinois. Brands like BetMGM, Caesars, and ESPN BET are yet to react.

Criticism of Illinois sports betting tax

While sportsbook operators have reacted to the implementation of the new sports betting tax in Illinois, many leading industry professionals have criticised the initiative. DraftKings CEO Jason Robins called the decision “incredibly ill-conceived.” The introduction of the tax prompted DraftKings to establish a political action committee in Washington, D.C., to more effectively lobby for its interests.

Meanwhile, the CEO of Circa, Derek Stevens, referred to the tax model as “not a good, logical, well-thought-out design.” He also indicated that the tax could have significant consequences for sportsbooks accepting lower-value bets, as sportsbooks will incur heavy taxes on a bet of $1.

Other organizations, such as the Sports Betting Alliance, a group lobbying for the best sportsbooks, have highlighted that the charge could force operators to provide lower odds and reduced promotional offers.

Fanatics decision comes soon after Fanatics Fest

Fanatics’ decision to implement a surcharge on bets in Illinois comes soon after the company wrapped up its Fanatics Fest 2025 event in New York. This was the second Fanatics Fest, held from June 20 to 22 at the Javits Center in New York.

The occasion gave sports fans the chance to interact with celebrities, including Lebron James, Tom Brady, Jay-Z, Derek Jeter, Peyton Manning, Eli Manning, Jayden Daniels, and Kevin Hart.

There were also chances to listen to live podcast recordings and athletes speak, enjoy fan events, and browse trading collections.

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.