Fanatics Sportsbook Instituting $0.25 Per Bet Fee in Illinois This Fall

• Fanatics Sportsbook will be instituting a per bet fee for users in Illinois
• Starting in the fall, Fanatics Sportsbook users will be charged a $0.25 per bet fee in the Prairie State
• Three operators have instituted per bet fees in the state to counteract the rising cost to do business

Another day, another Illinois sports betting operator planning to institute a per bet fee in the Prairie State.

As first reported by Sports Business Journal, Fanatics Sportsbook will be instituting a $0.25 per bet fee for customers in Illinois starting this fall. A Fanatics Sportsbook representative noted the decision reflects the high cost of operating in the state.

Fanatics Sportsbook is the third operator to institute a per bet fee in the state.

Third Operator to Institute Illinois Fee

Fanatics Sportsbook joins DraftKings and FanDuel as licensed Illinois operators to institute a per bet fee in direct response to the state’s decision to impose its own $0.25 or $0.50 fee on every bet placed with its licensed operators.

Similar to FanDuel and DraftKings, Fanatics Sportsbook will repeal its per bet fee if the state repeals its own fee plan.

Fanatics Sportsbook is only planning a $0.25 transaction fee for customers, compared with DraftKings and FanDuel’s plan for a $0.50 per bet fee. Fanatics Sportsbook will likely not cross the 20,000,000 bet threshold in the state and will not be subjected to the higher $0.50 fee thereafter.

The new Illinois sports betting fee, signed into law by Gov. J.B. Pritzker (D), will impose a $0.25 charge on an operator’s 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.

New Illinois Fees Go Into Effect Today

The new per bet fee imposed by the state will go into effect for operators today.

DraftKings and FanDuel 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.

It is unknown if any other licensed operator in the state is planning a per bet fee system.