DraftKings has followed the lead of rival FanDuel by introducing a $0.50 transaction fee on each bet placed on its platform in Illinois.
Like FanDuel, DraftKings will charge bettors $0.50 for every bet placed on its platform in the state from September 1.
The transaction fee is in response to the Illinois State legislature’s introduction of a new wagering tax on all licensed operators from July 1.
This wagering tax charges $0.25 on each wager for the first 20 million annual combined Tier 1 and Tier 2 wagers. The wagering tax comes on top of an increase in the state’s wagering tax rate that came into effect in July 2024.
“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,” said DraftKings CEO Jason Robins. “We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry.
“Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”
Shares in DraftKings Inc. (NASDAQ:DKNG) closed 0.26 per cent higher at $37.98 per share in New York Thursday.