DraftKings Could Follow FanDuel with Betting Surcharge in Illinois

DraftKings might follow suit of its biggest competitor as the operators prepare for Illinois tax changes.

Ziv Chen

Last updated: June 11, 2025 1:49 PM EDT • 2 min read

DraftKings Could Follow FanDuel with Betting Surcharge in Illinois — Pictured: The DraftKings float during the Super Bowl LIX Host Committee Parade. Photo by Kirby Lee via Imagn Images.

FanDuel recently announced a new 50-cent fee on every bet in Illinois as a reaction to the state's new sportsbook tax legislation. DraftKings has now also indicated that it may follow suit.

FanDuel's surcharge, which will begin in September, aims to mitigate the financial impact of a revised taxation policy included in Illinois' 2025 fiscal budget. In a memo sent on June 10, DraftKings, Illinois' other major sportsbook, announced that it is also considering implementing a surcharge for the same reason.

Illinois' tax reform levies a graduated bet-by-bet tax that will disproportionately impact the biggest Illinois sports betting operators. According to new legislation, 25 cents will be taxed per bet on the first 20 million bets and 50 cents per bet beyond 20 million.

A spokesperson for DraftKings said the company is "anticipating taking action and expects to share more information soon."

FanDuel and DraftKings dominated the Illinois sports betting apps marketplace with 75% of the state's sports betting usage total.

The per-bet tax comes in addition to Illinois's new progressive sports betting tax system implemented last year. The system increased the tax rate for the state's most successful sportsbooks from a flat 15% to as high as 40%. Combined with the percentage tax, the per-bet tax increases the tax rate considerably for the state's biggest sportsbooks.

Operators to pay more

Illinois Gov. J.B. Pritzker has justified the new tax system as a means of getting big gambling operators to pay what he described as their "fair share."

“Gov. Pritzker believes corporations should pay their fair share in Illinois. Now, thanks to these adjustments, which put the state in line with similarly sized markets, they will,” a Pritzker spokesman said in an email to the Chicago Sun-Times.

The added cost may reduce profit margins, but the governor and industry analysts don't foresee FanDuel or DraftKings scaling back in Illinois, one of the most lucrative and mature states in the US.

Other policymakers around the region are following the Illinois shift closely.

Lawmakers in the New Jersey sports betting, Maryland sports betting, Massachusetts sports betting, Michigan sports betting, and Pennsylvania sports betting markets are also examining their own tax systems and will at least consider charging higher rates or per-wager levies to collect additional state tax revenue.

Despite increased taxation, the stock market’s reaction to the amendments has been muted or even favorable. Flutter's stock went from $249.59 on June 6 to $267.51 at the close of trading on June 10. Comparatively, the NASDAQ-listed DraftKings also rose from $35.81 to $37.56 in the same period.

The small rises reflect ongoing investor confidence even as financial pressures mount.

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.