The Prairie State will do business in a brand-new way starting July 1.
Illinois Gov. J.B. Pritzker officially signed House Bill 2755, the state's official 2026 fiscal year budget on Monday, allowing tax changes and several other policies to take effect July 1.
Key Takeaways
- State will impose $0.25-per-wager rate for the first 20 million wagers, $0.50 after.
- DraftKings, FanDuel each announced 50-cent transaction fees starting on Labor Day
One such change is a new tax rate on every online sports wager in the state in an effort to increase revenue to go along with increases in appropriations in the new budget bill.
State officials are aiming to raise roughly $36 million in revenues by placing a per-wager tax on each sports betting transaction in the state. The state will impose a $0.25-per-wager rate for the first 20 million wagers placed with licensed sportsbooks in the state, and the tax rate will then increase another $0.25 to $0.50 per wager after that. All sports wagering receipts must be deposited into the state’s Sports Wagering Fund on a monthly basis.
“Despite all the uncertainty in these turbulent times facing the nation, Illinois’ fiscal year 2026 budget drives economic growth, it maintains the progress that we’ve made for working families and it continues our hard-earned fiscal responsibility,” Pritzker said, according to the Chicago Tribune.
FanDuel, DraftKings react
Two of the major sports betting platforms in the state - DraftKings and FanDuel - responded with their own transaction fees for each wager made on their respective online/mobile apps.
About three-fourths of all Illinois sports betting wagers are made through DraftKings and FanDuel.
On June 10, Flutter Entertainment's FanDuel announced that it will introduce a new $0.50 transaction fee on each bet placed on its platform starting on Labor Day, Sept. 1.
“It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize revenue for states over time," said Peter Jackson, Flutter CEO in a news release. "We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state."
Should the state somehow reverse its decision at any point in the future, FanDuel has said it will immediately remove the fee.
Two days later, DraftKings also announced that it will implement the same 50-cent transaction fee on all mobile/online bets placed in the state, effective on Sept. 1 as well.
“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,” said Jason Robins, Chief Executive Officer and co-founder of DraftKings in a news release. “Meanwhile, 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.”
DraftKings also said it will immediately remove the transaction fee from wagers in the state should the legislation be repealed.
