Gov. Pritzker Signs New Illinois Sports Betting Fees Into Law

• Gov. J.B. Pritzker (D) signed the $55.2 billion Illinois budget into law
• The budget includes new sports betting fees for licensed operators
• The fees will go into effect on July 1

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Gov. J.B. Pritzker (D) officially legalized new sports betting fees for every licensed operator in the state.

Gov. Pritzker signed the state’s $55.2 billion budget into law, which includes new charges for licensed operators on the first 20,000,000 online sports bets taken in the state, and an increased charge on every bet taken thereafter.

The new Illinois sports betting fees will go into effect on July 1, 2025.

New Fees Going Into Effect Next Month

The new fee will see a $0.25 charge on the first 20,000,000 online sports bets taken in the state each year. The fee will increase to $0.50 per bet for every single bet taken after the initial 20,000,000 bets.

According to a report from the Chicago Tribune, the new fee is expected to bring in $36 million annually to the state.

The fees will have a larger detriment on DraftKings and FanDuel, which will likely be the only two licensed operators in the state to eclipse the 20,000,000 bet mark. Coupled with the state’s new tiered tax rate system on operators, which requires both FanDuel and DraftKings to pay a 40% tax rate rate, the new per-bet fees will increase the operators’ tax rate to about 57% or 60%, the highest rate in the country.

BetMGM, bet365, BetRivers Sportsbook, Caesars Sportsbook, Circa Sports, ESPN BET, Fanatics Sportsbook, and Hard Rock Bet will likely not cross the 20,00,000 bet mark in the Prairie State.

DraftKings, FanDuel Respond With Customer Fees

In direct response to the new Illinois per bet fees, both DraftKings and FanDuel introduced $0.50 transaction fees on every bet placed in the state by every customer as a way to combat rising costs of business.

Both operators announced the new fees last week, with both going into effect on Sept. 1, 2025.

“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,” said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. “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.”

If the Illinois per bet fee is repealed, DraftKings will eliminate its own transaction fee.

FanDuel representatives said the same. If the state repeals its per bet fee, the operator will repeal its bet fee.

“It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize revenue for states over time. We are disappointed that the Illinois transaction fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state,” Peter Jackson, Flutter CEO, said in a release.