DraftKings Adds Surcharge in Illinois

DraftKings Becomes Second Book To Add Surcharge In Illinois

DraftKings has officially announced that it will add a $0.50 surcharge to every bet made on its platform in Illinois. This comes after the state announced it would change books $0.25 or $0.50 per bet on September 1, 2025.

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    Key Highlights

    + New Surcharge: DraftKings joins FanDuel in adding a $0.50 surcharge for each bet placed in Illinois.

    + Second Time: This is the second time DraftKings has tried to add a surcharge for each bet placed in Illinois.

    + Not Fair: DraftKings highlights how unfair this new tax is, while prediction markets skirt around all state taxes.

These new fees are being levied on sportsbooks as Illinois tries to close a $1 billion budget deficit. Books will be charged $0.25 for the first 20 million bets and $0.50 for each bet after. FanDuel was the first book to announce these new surcharges on its platform.

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What Did DraftKings Say About Surcharge?

In a public statement released on Thursday, DraftKings said it was open to collaborative policymaking but disappointed by the state's decision to "triple" tax rates on sportsbooks in two years.

DraftKings

"We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry."

-DraftKings Press Release, June 12, 2025

In 2024, Illinois raised the tax rate from 15% to 40%, and now, with this new "tax" the effective tax rate on books has jumped up to 60%.   

In that same release, DraftKings took a shot at what I can only assume are prediction markets like Kalshi, saying: "Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer." 

Illinois has served Kalshi a cease-and-desist letter, doing so in April. Kalshi maintains that its activities are legal and that, as a CFTC-regulated entity, it is above state laws. Kalshi's arguments are being debated in courtrooms across the country.

Previous Attempt At Increasing Taxes

This is not the first time DraftKings has brought up a per-bet surcharge in Illinois. Last year, the company was poised to launch a surcharge on all high-tax states, such as Illinois.

Documents from a press release at the time showed that Illinois customers would have to pay a $0.32 surcharge per bet.

Significant backlash from customers and seeing competitors like FanDuel forced DraftKings to abandon their plan.

More Books To Join?

With FanDuel and now DraftKings announcing a new surcharge in the Land of Lincoln, it's expected that other books will follow suit. BetMGM, Caesars, bet365, and Fanatics have yet to announce plans on surcharges.

These books don't see the same volume of traffic as FanDuel or DraftKings, perhaps they can charge $0.25 instead of the $0.50 that the two larger books do. 

Illinois' new fee is based on volume. The first 20 million bets are charged the lower rate, and every bet above 20 million sees a $0.50 fee. Which could be an advantage for the smaller books that can boast lower fees.

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