Illinois residents now face a new charge when using DraftKings, as the platform implements a transaction fee.
Ready, Set, Bet… But It'll Cost a Little More!
Yep, that's right, DraftKings is gonna charge you an extra 50 cents on every mobile and online wager you place in Illinois beginning 1 September 2025.
Illinois lawmakers have recently jacked up the taxes on sports betting, and DraftKings isn't all that thrilled. They claim it's handing them some serious increased tax obligations in the state over the past couple of years.
The 50-cent fee per bet is DraftKings' attempt to balance out these additional tax pressures, and they've made it clear they'll ditch the fee if the legislative changes are reversed.
Jason Robins, the big cheese at DraftKings, had this to say:
Ya know, it's disappointing that Illinois policymakers have decided to up our tax rate over the past two years, and we're extremely concerned about what it'll do to the legal betting game. Meanwhile, Illinois keeps fueling the illegal industry that doesn't pay a dime in taxes or fees and offers everything but consumer protection.
DraftKings is all about getting along and working on policies that help create a sustainable industry, reach state revenue goals, and keep consumers safe. They're also making big investments in responsible gaming, part of their broader effort to stay on good terms with regulators.
Illinois isn't the only state facing a tax makeover. Other states have been tweaking their gambling tax systems, turning up the heat on operators, who are now assessing their pricing models.
This $0.50 fee charged by DraftKings is among the first moves by a regulated operator to directly respond to increased tax pressures through betting fees. There might be more companies following suit, involving us punters in the action like never before.
States like Arizona and Wyoming are also making changes, adjusting tax rates, and, to a lesser extent, New York and New Hampshire, which boast some of the highest sports betting tax rates in the country. This can squeeze margins, lead to market consolidation, or force operators to exit markets altogether.
But hey, here's the good news: DraftKings and other operators are advocating for more favorable tax rates and policies, so let's hope for some change in the near future. In the meantime, hang onto your wallets a little tighter when planning your bets in Illinois!
Sources:- [1] Forbes- [2] Legal Sports Report- [3] DSNY everywhere- [4] AZ Central- [5] Casper Star Tribune
The increase in taxes on sports betting in Illinois has led DraftKings to impose a 50-cent fee per bet, a move aimed at balancing out the additional tax obligations.
In a broader context, other states such as Arizona and Wyoming are also adjusting tax rates for sports betting, potentially impacting operators' pricing models and possibly leading to market consolidation or operator exit from certain markets.
