Illinois Sports Betting Tax Sparks New Fees and Changes for Gamblers

New Betting Fees Introduced in Illinois

Sports bettors in Illinois have recently encountered new fees and higher minimum wager requirements as sportsbooks adjust to a recently implemented state tax. Beginning July 1, a new regulation requires betting companies to pay $0.25 for each of their first 20 million bets annually, with the fee increasing to $0.50 per bet thereafter. Illinois officials estimate that this tax could generate approximately $36 million in revenue for the state budget.

Industry Reactions: Fees and Minimum Bets

Sportsbook operators have responded differently to the tax. Bet365, for example, introduced a $0.25 surcharge on all bets under $10, while bets $10 and over are exempt from this fee, which is refunded if the wager is canceled or voided. Other major sportsbooks such as FanDuel and DraftKings have opted to apply a $0.50 fee to every bet regardless of size. Meanwhile, Caesars and Fanatics have implemented smaller fees, whereas BetMGM, Hard Rock Bet, and BetRivers have chosen to raise the minimum betting amounts instead of imposing direct charges.

Concerns from Industry Groups and Operators

Several industry organizations, including the Sports Betting Alliance, have criticized the tax, arguing that it unfairly impacts casual bettors who typically place smaller wagers. According to their data, over half of all bets placed in Illinois are $5 or less. They warn that increased betting costs may drive players to offshore sportsbooks, which are unregulated, offer limited consumer protections, and do not contribute tax revenue to the state.

Flutter Entertainment, the parent company of FanDuel, has echoed these concerns. Representatives from Flutter stated that while the fee is necessary to maintain their business operations in Illinois, they would remove the surcharge if the tax policy is revised. They also cautioned that higher fees might encourage some users to switch to illegal betting platforms that offer lower costs.

Reactions from Illinois Bettors

Many Illinois bettors have expressed their dissatisfaction on social media and forums. Casual gamblers lament that the new fees make small, casual bets prohibitively expensive, prompting some to consider placing bets in neighboring states or through offshore sites. Market analysts suggest that these shifts could reduce the size of the legal betting market, ultimately decreasing the tax revenue the state aims to increase.

Looking Ahead: Impact on Illinois Sports Betting Market

Despite the backlash, Illinois remains one of the largest sports betting markets in the United States, and sportsbooks are expected to maintain their presence in the state. As the football season intensifies, the effects of Illinois’ tax policy will become increasingly apparent. Both bettors and sportsbooks are adapting to the more costly environment while closely watching to see if lawmakers decide to revisit and possibly amend the tax law amid ongoing criticism.