• FanDuel will press on with its $0.50 surcharge in Illinois
• This comes in response to a newly introduced tax on sports betting platforms
• Flutter, FanDuel’s owner, is ready to reverse the decision if Illinois removes the new tax

When DraftKings toyed with the idea of introducing a surcharge, it was quickly ridiculed for its presumed venality.

Fast-forward to June 2025, though, and FanDuel, the company that once boasted that it would not be adding surcharges like "some" of its competitors (the least thinly veiled ribbing if we ever saw one), has ended up announcing a surcharge of its own.

Surcharge is the only way to respond to the new tax in Illinois

Now, though, the company has been forced to introduce the $0.50 surcharge that will apply on each bet placed in Illinois, and it comes in response to the addition of a new tax charged on sports betting companies imposed by the state.

Flutter Entertainment, the company that owns FanDuel, which in turn owns nearly 50% of the sports betting market in the United States, confirmed that it was prepared to reverse the surcharge should Illinois reconsider – now or in the future.

The company has already developed tools to mitigate the impact of higher taxes, such as reducing marketing and introducing more moderate customer offerings. Flutter added that it was not content with having to resort to such measures in the first place, but that it was the only way, after failing to absorb the full impact of the tax hit.

In a statement, the company’s boss, Peter Jackson, had this to add: "It is important to recognise that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth and maximize revenue for states over time."

The new surcharge will apply to every bet placed through FanDuel’s Illinois platform, and it will launch on September 1, 2025.

Navigating a market that is increasingly difficult for companies

Hiking taxes has been known to generally reduce market competitiveness and make regulated jurisdictions more prone to losing ground to black-market operators, which has been a well-documented problem in developed markets in Europe.

Not only that, but it is also possible for companies that have been facing tough operational conditions in key markets to also start obligating their customers to start wagering a minimum amount, such as $1, $2, $5, or even $10. What an obligatory amount such as this would be would depend on what the current marketing conditions are and whether companies can cover the tax.

Louisiana has recently also increased its sports betting tax as well, and the trend is for more states to be exploring the idea of doing the same.

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