Sports betting operators in Illinois are now required to pay a per-bet fee, starting today.
In a significant shift for the sports betting landscape in Illinois, a new per-wager tax has been introduced on online sports betting operators, effective from the 2026 fiscal year. This tax structure, detailed below, aims to generate substantial revenue for the state.
The per-wager tax is structured as follows:
- A fee of 25 cents per bet is imposed on the first 20 million online wagers accepted by each sportsbook annually. - For all wagers exceeding 20 million per sportsbook per year, the fee increases to 50 cents per bet.
This new tax is in addition to Illinois' existing progressive tax on sportsbook gross gaming revenue (GGR), which ranges from 20% to 40% depending on the revenue tiers. The GGR tax rates are as follows:
- 20% on the first $30 million of Adjusted Gross Sports Wagering Receipts (AGSWR) - 25% on $30M to $50M AGSWR - 30% on $50M to $100M AGSWR - 35% on $100M to $200M AGSWR - 40% on AGSWR exceeding $200 million
This combined tax structure makes Illinois one of the highest-cost markets for operators like FanDuel and DraftKings, who have announced plans to pass some or all of the per-wager fee costs to bettors. For instance, FanDuel will start passing the fee on to customers from September 1, 2025, while DraftKings will follow suit from the same date.
It's important to note that the implementation of the per-wager fee for different operators in Illinois may not align, and the fee may not affect all customers uniformly. The fee is a flat rate for each wager in online sports betting in Illinois.
The per-wager fee applies to online sports betting in Illinois on a yearly basis. While the exact impact on the overall cost of sports betting for customers remains to be seen, the announcement by FanDuel and DraftKings highlights the potential implications.
Other operators, such as Fanatics, have also confirmed they will pass the per-wager fee on to customers, although a specific start date has not been provided. It's worth noting that both FanDuel and DraftKings have a history of charging fees in higher-taxing states.
The fiscal year in Illinois has begun in 2026, and this new tax structure is expected to generate an estimated $36 million annually from per-wager fees alone.
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Bettors in Illinois may soon find their sports betting costs escalating, as operators like FanDuel and DraftKings plan to pass on the per-wager fee to customers, starting from September 1, 2025, for FanDuel, and from the same date for DraftKings. The new tax structure, implemented in Illinois' sports betting landscape, imposes a flat rate fee of 25 cents per bet for the first 20 million online wagers annually, and 50 cents per bet for all wagers exceeding 20 million per sportsbook per year.
