Illinois could be in a spot of trouble thanks to its controversial decision to charge sportsbooks a $0.50 fee per wager. Specifically, since books like FanDuel and DraftKings will pass those fees onto customers. Data from GeoComply shows a significant number of Illinoisans have already crossed the border to place their bets, with more expected to do so.
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What Is This New Charge In Illinois?
As part of deficit-reducing measures, Illinois enacted new taxes on several industries, including the sports gambling industry. Illinois already raised taxes on gross gaming revenues (GGR) for sportsbooks in 2024, to as much as 40%, so they couldn't justifiably raise taxes on GGR again; they decided to add the $0.50 fee for each bet made.
According to Illinois lawmakers, the fee should increase tax revenues by $141 million annually. The two biggest books, DraftKings and FanDuel, have passed that surcharge onto customers with a $0.50 fee for every bet made.
To suggest this is a sustainable windfall of tax revenue is both short-sighted and irresponsible. Bettors won't accept these surcharges; they'll find ways around them.
Such as leaving the state to make bets.
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Must be 21 or older and physically present in OH. New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,059. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Know When To Stop Before You Start.®
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Bettors Shop With Their Feet
I reached out to GeoComply, a geo-location verification service, to help me illustrate that point. Using their data, we can already see how players are leaving the state to place their wagers elsewhere. And we aren't talking about a few hundred bettors, but thousands are already leaving the state. A number that will increase once this new fee is implemented.
With the Chicago Metropolitan area bleeding into Indiana, it's no surprise that Illinoisans place bets in the Hoosier State. However, the volume leaving the state per GeoComply is larger than you likely anticipated, with over 5,600 accounts placing tens of thousands of bets in Indiana, where the tax rate is below 10%.
That tax rate, which is a quarter of Illinois' maximum 40% rate, allows sportsbooks to provide Indiana customers promotions, offers, and lines that aren't available to Illinoisans.
As GeoComply's Senior Vice-President of Compliance says, bettors are shopping with their feet:
 | "Our data has consistently shown that bettors shop with their feet. In today’s mobile world, crossing state lines for better odds or promos is no big deal — and we see it happen all the time. Illinois is already one of the highest-tax states for sports betting, and people are already heading into Indiana and Iowa to get better value – a trend that is likely to grow. When Missouri goes live in December, Illinois won’t just lose out-of-state traffic — it could start losing even more of its own players too." -Lindsay Slader, SVP of Compliance, GeoComply |
And look, that was just the data for players leaving Illinois to bet in Indiana, we must also consider those leaving the Land of Lincoln's Western border to bet in Iowa. There, GeoComply has found over 2,700 players crossing into the Hawkeye State.
Just like Indiana, Iowa's low tax rate of 6.5% allows books to offer promotional incentives that aren't available in high-tax states. And bettors are betting.
Bye-Bye Missouri Bettors
Illinois might be losing customers to low-tax states, but it gains customers from Missouri, where sports betting isn't yet legal.
Missouri only recently legalized sports betting, forcing players to leave the state to place their wagers. That will change on December 1, 2025, when the Show-Me State launches sports gambling.
GeoComply shows that 4,500 Missouri bettors are flooding into Illinois to place bets. That's another 4,500 players Illinois will lose on December 1, guaranteed.
Terms and Conditions
Must be 21 or older and physically present in OH. New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,059. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Know When To Stop Before You Start.®
Gambling problem? Call 1-800-GAMBLER
No Such Windfall
GeoComply's data shows thousands of bettors are already leaving Illinois to play in low-tax states. The new $0.50 per bet fee will only amplify the flood of players leaving the state.
Illinois lawmakers enacted this charge to increase tax revenues, but the outcome will be the opposite. Not only will it force more Illinoisans to leave the state and place bets elsewhere, but it will also reduce the number of wagers placed by those who stay within Illinois borders.
Covers recently conducted a survey asking Illinoisans how a $0.50 fee for each bet would impact their betting habits. The results showed 44% of respondents would reduce the number of bets placed.
This surcharge will fail to achieve its intended goal of increasing tax revenues, but it will succeed in alienating bettors. Well done, Illinois.
