Flutter’s FanDuel is adjusting to a new cost of doing business in Illinois. The Illinois transaction fee, set to kick in on July 1, 2025, will increase costs for all licensed operators in the state. FanDuel says it has no choice but to pass on some of that burden to its users in Illinois.
From September 1, 2025, FanDuel will introduce a $0.50 fee on every sports bet placed on its platform in Illinois. The move follows the Illinois legislature’s decision to enforce a transaction fee on all wagers starting July 1. Flutter says this step is due to the rising costs of operating under the Illinois transaction fee.
The Illinois transaction fee follows a betting tax hike introduced in 2024. FanDuel had previously absorbed that tax increase without passing costs on to players. But Flutter says the new fee pushes operating expenses too far.
Flutter argues that the transaction fee will impact casual bettors more than high-stakes players. Lower-volume users will feel the per-bet fee more acutely. The company suggests this structure is unfair to recreational gamblers.
FanDuel’s new fee will only apply in Illinois and will be removed if the state cancels the transaction charge. Flutter says it wants to keep things simple for customers. But it stresses that ongoing regulatory changes make cost control difficult.
Flutter CEO Peter Jackson warned the new Illinois transaction fee could push players toward unlicensed sites. “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,” he said. He added that this undermines both the legal market and state revenue goals.
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