Fanatics is the last online operator responding to gaming tax changes in Illinois.
According to a report from Sports Business Journal, the sports betting and casino operator is implementing a transaction fee on all online sports wagers placed in Illinois. Fanatics is placing a transaction fee on wagers in Illinois as the state enforces a new per-wager tax rate on licensed online sports betting operators. Starting this month, Illinois is charging online operators at least 25 cents per wager as part of a new fiscal budget.
The per-wager tax jumps to 50 cents per wager after the first 200 million bets in a year. Fanatics has a 25-cent transaction fee that it will levy in Illinois. The operator plans to implement its new fee in the fall, a Fanatics spokesperson confirmed to SBC Americas.
DraftKings and FanDuel are responding to the per-wager tax in Illinois by implementing a 50-cent transaction fee on all online wagers placed with the operators starting Sept. 1.
FanDuel was the first operator to make the decision with DraftKings shortly after.
DraftKings had previously announced plans to implement a 3-5% surcharge on winning wagers in several states, including Illinois. The Boston-based operator abandoned the plan after negative feedback from customers and experts across the gaming industry.
Fanatics faced previous tax rate change in Illinois
The Land of Lincoln added a new per-wager tax after making a tax adjustment in 2024.
Last year, Illinois Gov. J.B. Pritzker signed a budget taxing online sports betting operators on a sliding scale based on adjusted gross revenue. The budget mandates that operators in Illinois that generate more than $200 million in annual revenue be taxed at a 40% rate.
Operators under that threshold for revenue are taxed at a 20% rate. Before Pritzker approved last year’s budget, Illinois taxed online sportsbooks at a flat 15% rate.
