Illinois Bettors Upset as They Face New Surcharges on Wagers
The final shoe has dropped.
Bettors in the Illinois sports betting market will now face surcharges or minimum bets on all online sports bets placed, as the final sportsbook, bet365, has announced it will introduce a 25-cent surcharge on all bets under $10. The shift comes after the state legislature passed, and Governor JB Pritzker signed, a first-of-its-kind law in May that imposes a per-bet fee on all wagers placed in the state.
The measure requires sportsbooks to pay a 25-cent surcharge on the first $ 20 million in annual wagers and a 50-cent surcharge on each bet exceeding that threshold. All 10 licensed Illinois sports betting apps have now adopted strategies to offset the new costs, either through mandatory fees or by setting minimum bet limits.
The new fees are an addition to Illinois' existing sports betting tax framework, which has seen rates rise in recent years. The state initially imposed a 15% tax on adjusted gross revenue, later increasing it to 20% and 40%, depending on operator revenue.
Social media commentary about the changes has increased significantly. Disgruntled users have taken to Reddit with comments like "As a small time bettor, I’m out. I’ll just stick to DFS I guess."
DraftKings CEO warns tax could harm industry
The new per-bet surcharge has also prompted sharp criticism from not only users but also sportsbook leaders. DraftKings Chief Executive Officer Jason Robins described Illinois' policy as "incredibly ill-conceived" and argued that it would harm both the regulated market and its consumers.
In an interview with CNBC, Robins stated that the fee blindsided operators and was introduced without prior consultation. He noted that DraftKings had met with legislative leaders in the weeks before the state budget was released and was given no indication of the impending changes.
Robins said the structure makes it nearly impossible for platforms to operate profitably without raising player costs. DraftKings confirmed it would implement a 50-cent surcharge per bet beginning Sept. 1, though it expressed willingness to withdraw the fee if lawmakers agreed to amend the system.
Robins added that the implications extend beyond operator margins. He warned that the higher costs could drive players toward offshore gambling platforms, which do not pay taxes or provide consumer protections.
According to him, the policy risks undermining Illinois' regulated market by incentivizing bettors to seek cheaper alternatives outside state oversight.
"All it’s going to do is drive people to the illegal market or drive people to bet more… We had no warning, actually met with legislative leaders in the weeks before the budget was released, and they made no mention of this, so it’s sort of crazy how it all went down," said Robins.
