DraftKings Plans 50-Cent Fee on Illinois Sports Bets From 2025

DraftKings Inc. announced it will implement a 50-cent transaction fee on all mobile and online sports bets placed in Illinois starting September 1, 2025, in response to the Illinois state legislature's recent and prior increases in sports wagering taxes. CEO Jason Robins expressed disappointment with the state for more than tripling the company's tax rate over two years and warned that these hikes could harm the legal, regulated betting industry while benefiting illegal operators who do not pay taxes or provide consumer protections. DraftKings emphasized its contributions to Illinois through tax revenue, job creation, and investments in responsible gaming. The company also stated it supports collaborative policymaking for the industry's long-term sustainability and pledged to remove the transaction fee immediately if the tax legislation is repealed. DraftKings, headquartered in Boston, operates in 28 states and partners with major sports leagues, highlighting the significance of Illinois as a key market. The move underscores ongoing tensions between regulated sports betting companies and state tax policies amid concerns over illegal gambling growth.