FanDuel has briefly stopped charging its per-bet charge in Illinois, a transfer that comes as state lawmakers proceed to debate the way forward for the controversial wagering tax. The firm confirmed it is going to droop the 50-cent surcharge on bets positioned within the state by way of June 19, a date that aligns with the potential finish of the NBA Finals.
The choice marks a shift from FanDuel’s earlier method. The sportsbook launched the charge in September 2025 after Illinois applied a per-wager tax system. That system requires operators to pay 25 cents per wager for the primary 20 million wagers yearly, with the speed doubling to 50 cents as soon as that threshold is exceeded. FanDuel crossed the 20 million wager mark in lower than six months, triggering the upper price.
Despite the coverage change, the corporate has not publicly defined why it’s eradicating the surcharge for now. FanDuel knowledgeable clients through e mail and social media however declined to supply extra context when requested. Other licensed operators in Illinois haven’t adopted go well with, with some as an alternative adjusting their methods by elevating minimal wager necessities to offset the tax burden.
Temporary Policy Change Amid Legislative (*19*)
The timing of FanDuel’s transfer has drawn consideration as Illinois lawmakers contemplate House Bill 5143, launched by state Rep. Daniel Didech. The proposal seeks to eradicate the per-wager tax fully. Although the invoice has obtained help in committee discussions, it stays stalled after being despatched again to the House Rules Committee.
For the measure to advance this yr, it should cross out of the House and transfer to the Senate by April 17. If permitted and signed into regulation, the repeal would take impact on July 1. FanDuel has beforehand indicated it might completely take away its surcharge if the state reverses the tax coverage.
The per-wager tax is only one a part of Illinois’ broader method to regulating on-line sports activities betting. In 2024, Governor JB Pritzker permitted a progressive tax construction that applies charges starting from 20% to 40% based mostly on sportsbook income. Operators producing greater than $200 million in adjusted gross income face the very best price.
Local taxes add one other layer. Chicago launched a ten.25% tax on on-line sports activities betting income generated inside metropolis limits, which took impact at the beginning of 2026. The coverage has already sparked authorized challenges, with the Sports Betting Alliance arguing that municipal taxation and licensing overstep state authority.
Impact on Betting Behavior and Market Competition
FanDuel’s non permanent charge removing may affect betting exercise, based on InGame, significantly within the parlay section, which performs a significant position in its income mannequin. More than 65% of the corporate’s adjusted gross income for the present fiscal yr has come from multi-leg bets, together with same-game parlays.
While FanDuel has improved its efficiency metrics, the amount of parlay bets has declined. The variety of such wagers dropped by 19.4% to 53.3 million, and whole parlay deal with fell by 9.1% to $1.04 billion. The decline has been linked to the surcharge, which discouraged smaller, multi-leg bets typically positioned throughout high-traffic durations just like the NFL season.
At the identical time, FanDuel’s maintain price on parlays has elevated to twenty.6%, reflecting stronger operator efficiency. The common parlay wager has additionally risen, climbing from $17.27 to $19.48.
Competitor DraftKings has taken a special method, selecting to not apply its surcharge to parlays of $10 or extra. That technique seems to have paid off, as DraftKings reported a 20.5% improve in parlay deal with, reaching $1.05 billion. Its parlay income jumped 33% yr over yr, supported by the next common wager measurement and improved win price.
FanDuel’s earlier choice to use a common surcharge might have opened the door for rivals to realize floor on this key section. The non permanent removing of the charge may assist the corporate regain a few of that misplaced momentum, relying on how bettors reply within the coming weeks.
High Tax Burden Shapes Industry Decisions
The monetary impression of Illinois’ tax construction on operators stays important. FanDuel alone has contributed greater than $32.8 million by way of the per-wager surcharge between July and January. Combined with different obligations, together with state taxes and native levies, its efficient tax price has reached 44.2%.
Overall, FanDuel and DraftKings have paid greater than $50 million in per-wager taxes within the state. Additional prices embrace county-level taxes and Chicago’s municipal levy, additional growing the monetary strain on operators.
These situations have led sportsbooks to undertake assorted methods to handle prices, from implementing charges to adjusting betting limits. FanDuel’s newest transfer introduces a special method, no less than briefly, because the business watches intently for potential legislative modifications.
With the June 19 deadline approaching, the suspension of the charge might function a short-term check of how pricing influences bettor conduct. At the identical time, the result of ongoing legislative efforts will seemingly decide whether or not such charges stay a part of the Illinois sports activities betting panorama.
