Caesars Sportsbook Adds Illinois Surcharge in Response to New Per-Wager Tax

Caesars Sportsbook will begin charging Illinois customers a 25-cent surcharge on each online wager starting September 1, becoming the fourth operator in the state to pass the new per-bet tax directly on to consumers. 

The new charges are a direct response to the recently implemented per-wager tax in the Illinois sports betting market, which took effect on July 1. Under the law, the first 20 million online bets placed with any operator will be taxed at 25 cents per bet, with each subsequent bet taxed at 50 cents. Caesars told customers that the surcharge will apply to all digital cash wagers, including those with profit boosts. 

However, it clarified that wagers placed at its three in-person retail sportsbook locations will not carry the additional fee, only those placed on its Illinois sports betting app. Bonus bets and wagers placed with rewards points are also exempt.

The operator emphasized that surcharges will be displayed at the time of bet placement, shown on the bet slip, and included in both bet and transaction histories. Refunds will apply in the event of voided or canceled wagers.

Caesars is unlikely to surpass the 20-million bet threshold despite offering Illinois sportsbook promos, meaning most of its wagers will remain subject to the 25-cent surcharge. By contrast, some of the best sports betting sites are expected to cross the limit by next month, triggering the higher 50-cent rate. The rollout comes at a time when the state has already increased its tax rate on sports betting operators, shifting from a 15% flat rate to a sliding scale of 20% to 40% depending on revenue.

The Illinois Gaming Board has also indicated that surcharges may be subject to taxation, which some analysts suggest could result in double taxation. Critics argue this places further strain on operators and raises costs for consumers.

FanDuel and DraftKings impose fees

In response to the tax, FanDuel and DraftKings, Illinois’ sports betting market leaders, confirmed in June that they would be implementing a 50-cent fee on all online wagers starting Sept. 1. The companies are the only operators in Illinois expected to exceed 20 million wagers in 2025, which will subject their customers to the higher tax rate.

FanDuel’s parent company, Flutter, has voiced concern that the fee will disproportionately affect smaller recreational bettors. It reported earlier this year that 60% of its same-game parlay bets are for $5 or less, while 90% are under $30. 

The Sports Betting Alliance has also argued that "A per bet tax most penalizes small recreational bettors, many of whom are betting a single dollar or two. Under this legislation, these popular bets will get hit with a massive 25% or 50% tax."

Industry representatives warn that the measure could push players toward unregulated markets, which do not charge fees or pay state taxes.