FanDuel is temporarily reversing course on its per-wager surcharge in Illinois.
The Flutter-owned brand announced that it will temporarily waive its 50-cent per-wager fee in the Lincoln State until June 19, the latest possible game date for the NBA Finals.
FanDuel imposed a 50-cent transaction fee in Illinois in September 2025 after the state’s legislature voted to implement a per-wager tax system that charges operators 25 cents per wager for the first 20 million wagers placed in a year within the state. The per-wager tax increases to 50 cents once an operator surpasses that threshold for wagers placed.
FanDuel surpassed the 20 million threshold for wagers placed in less than six months.
FanDuel has not disclosed the reasoning behind its decision to temporarily cease its per-wager tax in Illinois. SBC Americas reached out to the company for comment and context on its decision.
As of April 10, FanDuel is the only licensed operator in Illinois to adjust its per-wager transaction fee. It noted at the time that it introduced the surcharge that it would eliminate it if the state’s per-wager tax requirement for online sports betting operators was repealed.
To date, FanDuel and DraftKings have paid over $50m in per-wager taxes in Illinois.
Illinois lawmaker wants to nix per-wager tax
The operator is eliminating the per-wager tax as lawmakers in the state consider a measure proposed by Rep. Daniel Didech to repeal the per-wager tax.
Didech’s repeal measure, House Bill 5143, was introduced in February and referred to the House Rules Committee, where it garnered support from several lawmakers, including Rep. Michael Kelly. The measure was later assigned to the House Revenue & Finance Committee, where it garnered further support from democrat House members. HB 5143 remains stagnant in the Illinois legislature after being re-referred to the rules committee.
In order to progress, Illinois House members are required to send HB 5143 to the Senate by April 17, the crossover deadline for bills to transition out of their original chamber. HB 5143 would go into effect on July 1 if passed in the legislature and signed by Gov. JB Pritzker.
Illinois tax structure for online wagering
The per-wager tax in Illinois is one of several tax standards for online wagering.
In 2024, Pritzker introduced a sliding tax scale for online sportsbooks. The scale taxes operators at a 20% rate on the first $30m in revenue generated through sports betting. The highest tax rate on the sliding scale is 40% for wagering revenue in excess of $200m.
Licensed operators in Illinois are also facing a local tax in Chicago. Mayor Brandon Johnson’s latest budget imposes a 10.25% local tax on all online wagers in Chicago.
Didech is also leading a legislative effort to repeal the local Chicago tax for operators. The measure, House Bill 4171, is set for a second reading and debate in the House.
More tax-related changes may be imposed in Illinois with Pritzker’s latest state budget proposing a sliding scale for casino games that could generate $120m in new revenue.
