• DraftKings has joined FanDuel, introducing a betting surcharge in Illinois
• The measure was floated once before but ultimately withdrawn amid a bevy of criticism
• Both companies are now forging ahead as a new tax is kicking off in Illinois

The state of Illinois has sought – and succeeded – in increasing the tax rate sportsbooks pay. Now, though, they are going to pass on at least part of this onto their customers.

While traditionally sportsbooks would lower their odds and offer less worthwhile offers, they are partially doing something different in the case of the Prairie State, directly charging users who place bets.

New tax will be mitigated by passing it onto the customers

First, FanDuel announced that, given the new tax hike, the company would no longer be able to absorb tax-related costs and has announced a $0.50 surcharge that will apply on every bet starting later this year. Although the measure was once ridiculed when DraftKings floated it, both companies have now moved in unison.

Shortly after FanDuel confirmed its intentions for a surcharge, DraftKings, which has been toying with the idea far longer, sent an email to the press, Casino Guru News included, and confirmed that it will add a 50-cent transaction fee. Similarly to FanDuel, DraftKings has agreed to wait until September 1, 2025, to introduce the measure.

DraftKings CEO and Co-Founder Jason Robins spoke about the changes and why they have been necessary.

"Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources."

Similar to what his homologue, Peter Jackson, at FanDuel said, Robinson also said that DraftKings was disappointed that Illinois policymakers had chosen to effectively triple the tax in the space of only two years. This kind of tax increase has resulted in the need to pass the surcharge onto players.

Surcharge coming for sportsbooks- but now for the players, too

The new law effectively mandates that sportsbooks pay a $0.25 surcharge on the first 20m wagers placed with their platforms, and $0.50 on anything after that. However, the intended effect may be disgruntled punters who find the local market less appealing and turn to offshore alternatives.

DraftKings and FanDuel are effectively passing the tax onto their customers but have both expressed willingness to reverse the surcharge should Illinois change its mind, too.

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