FanDuel has restored a 50-cent transaction fee on qualifying wagers in Illinois to cover the state’s per-wager tax, which charges operators 50 cents per bet after their first 20 million qualified online wagers.
Under Illinois law, operators pay 25 cents on each of the first 20 million qualified online bets that customers make during the relevant period, and the rate rises to 50 cents for all further bets.
FanDuel entered the highest tax rate once it surpassed the 20 million-wager threshold, and the company then introduced the 50-cent transaction charge on eligible bets to cover that expense.
The American digital sports gaming, betting and daily fantasy sports company, which Flutter Entertainment owns, applies the fee to each qualifying wager. Illinois law sets the 25-cent and 50-cent tax rates, while FanDuel’s Illinois rules establish the 50-cent charge on qualified wagers.
Taxing the bet, not just the win
Standard sports betting taxes are often based on revenue, but Illinois also levies a tax on betting activity itself. Under this arrangement, operators that process a high volume of bets, especially smaller ones, may incur higher expenses. FanDuel’s transaction charge is tied to that arrangement.
The per-wager tax works in conjunction with a tiered system for sportsbook revenue. Illinois does not apply a uniform rate to all earnings. Instead, operators pay 20% on their first $30 million in revenue and 25% on revenue between $30 million and $50 million.
The rate is 30% for revenue between $50 million and $100 million and 35% for revenue between $100 million and $200 million. Under this method, higher-revenue firms provide a bigger portion of taxes when their revenues increase.
One tax is based on sportsbook revenue, and the other is based on betting volume. Operators must therefore keep track of both the amount of money they make and the number of bets their customers place.
From 2025 rollout to October return
FanDuel first implemented the surcharge after Illinois introduced its per-wager betting tax in 2025. The company applied it to eligible bets, and the charge covered the additional expenses that came with the state’s tax system.
The sportsbook suspended the fee in April 2026. The pause covered the period around the NBA Finals and continued for several months after the series ended in five games rather than reaching June 19, 2026, the scheduled date of Game 7.
FanDuel reinstated the fee in October, so Illinois customers will again pay the extra charge after several months without it.
A flat fee on stakes of every size
The charge stays at 50 cents regardless of the stake amount, so its impact diminishes when wagers increase. On a $1 wager, the fee equals half the stake, while on a $100 wager it amounts to 0.5%.
Wagers that customers place exclusively with Bonus Bets, straight bets of at least $25 and parlays of at least $10 are exempt from the fee.
Illinois’ sports betting market continues to record strong betting handles, and the sector continues to generate revenue for its operators despite an increasing tax burden.
Illinois Gaming Board data showed that retail and online sportsbooks recorded more than $1.05 billion in wagers in July 2026, a 21.7% increase over the previous year. Adjusted gross income rose 30% year over year to about $116.5 million.