FanDuel To Charge Users 50c For Every Bet In Illinois

FanDuel announced that it will introduce a $0.50 charge for every bet placed by users in Illinois in response to new taxes in the state.

Illinois lawmakers introduced a new tax on sports bets in the state, charging operators $0.25 for every bet accepted and $0.50 per bet for operators that take in more than 20 million bets. With FanDuel one of the leading US sportsbooks, it would be in the latter camp and has decided to pass on all the cost to its customers.

Tax punishes operators, says Flutter CEO

Flutter’s CEO, Peter Jackson, echoed comments by the SBA that called the new tax “discriminatory, punitive and constitutionally suspect.” Jackson commented, “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.

“We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”

DraftKings may follow FanDuel’s lead

Last year, DraftKings announced it would implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%. This applied to Illinois after the state increased its rate from 15% to between 36% to 40%.

The company backtracked on the plan, however, after negative reaction from users. Commenting on the decision to cancel the surcharge, a DraftKings statement read, “We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers,”

Adam Roarty

Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.