It is the beginning of the 2026 fiscal year in Illinois, which means sports betting enters a new phase of taxation.
The per-bet fee of 25 cents on the first 20 million wagers a sportsbook accepts annually begins today for online Illinois sports betting operators. That fee jumps to 50 cents per bet for all bets beyond the 20 million mark.
So far, three sportsbooks have confirmed they will pass the fee on to the bettors. FanDuel was the first to announce the passing the fee to customers. DraftKings followed suit just a few days later. That was unsurprising given its appetite to charge a fee last year in higher-taxing states. Both will begin their fees on Sept. 1.
Fanatics told Sports Business Journal it will also pass the cost to customers, but did not offer a start date.
Regulator answers from FAQs on new fee
A day after the fee became law, the Illinois Gaming Board provided answers to a few common questions for operators to provide clarity around the fee.
Bettors pay the fee at the time they place a bet. It does not matter how they fund the bet. Wagers made with promotional bonus bets or rewards dollars are subject to the fee just like a cash wager.
One main distinction is that pushed bets will pay the fee, but voided bets do not. The IGB noted some operators “may have been incorrectly or imprecisely” using the term void in their house rules when the outcome should really be considered a push.
“Accordingly, the IGB strongly encourages all licensees to review your house rules, internal controls, and record keeping systems to ensure that pushed wagers are not treated as voids in your sports wagering systems and that your reporting of wagers and tax liabilities is accurate and statutorily compliant,” the FAQ says.
Latest Illinois sports betting tax targets leaders
A new tax in Illinois for the second year in a row hits DraftKings and FanDuel hardest.
The top two sportsbooks are the only ones that have surpassed 20 million annual bets. So, they are the only ones in line for the 50-cent fee.
In 2024, the sports betting tax changed from a flat 15 percent to a tiered system that taxes revenue between 20% and 40%. Only DraftKings and FanDuel fell into the range for the 40% tax.
