The Current: FanDuel To Start Charging 50-Cent Fee On All Illinois Sports Bets
Gambling news roundup: Tennis betting dominates at Kalshi; Resorts World quits sports betting in New York; new sports betting book due out in 2026.
The Current is a weekly report on developments in the gambling industry from The Closing Line
The biggest US sports betting operator is taking a drastic step to offset a planned Illinois tax hike.
FanDuel’s parent company, Flutter, announced that every bet placed in Illinois will come with a $.50 transaction fee. This follows the state legislature's passage of a budget including a 25-cent tax on operators for every sports wager. That tax increases to 50 cents after an operator takes 20 million wagers in the fiscal year.
Flutter included this from CEO Peter Jackson in a statement issued on Tuesday morning:
“It is important to recognize 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. We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state. We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”
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Inside Flutter’s transaction fee decision
The idea of this kind of fee isn’t new for operators trying to offset high taxes. I was not a fan of the DraftKings “surcharge” when they rolled out the idea before shelving it about a year ago. The problem then was timing and optics; some of this was meant to offset New York’s 51-percent tax rate, something that hadn’t changed and that DraftKings and other operators agreed to.
But things have changed. Multiple states have considered or passed tax hikes in 2025, with another round of tax increases likely on the horizon for 2026. And the Illinois tax hike is so egregious that sportsbooks have no choice but to push back in some way.
FanDuel’s move here likely serves several purposes:
The budget still needs to be signed by Gov. JB Pritzker. As unlikely as it is to turn around momentum on the tax hike, it’s probably more effective than lobbying behind the scenes. FanDuel signaling that it’s willing to pass on the entire tax to the consumer has a non-zero chance of effecting change before the budget is codified.
At some point, operators have to draw a line in the sand on what they’re willing to eat in taxes. They could leave a state entirely, but Illinois is way too big. Any major operator leaving would likely just cede the market to other sportsbooks. So short of exiting, and doing other things to offset the tax behind the scenes, a very public declaration of your plan to deal with the tax sends a message. That message: “If another state does something like this, we’ll respond in kind.” Will this kind of action make another state think twice before a tax hike? That’s up for debate, but it’s perhaps the best tool in the sportsbooks’ tool belt right now.
Part of the DraftKings gambit on the surcharge was that other operators would come along for the ride. That didn’t happen; in fact, other operators (FanDuel included) explicitly said they would not implement similar measures at the time. It’s of course possible that happens again, but FanDuel, as the largest operator, is likely attempting to give everyone cover to do the same or similar.
The fee will likely have some knock-on effects for FanDuel and users. If you want to place a small wager, and you’re confronted with a 50-cent fee, it’s going to stop people from betting. FanDuel, again, is willing to absorb some loss of handle (and possibly revenue?) in order to draw that line in the sand. I am sure the folks at Flutter have run the game theory on this.
It’s also possible that people start 1) betting more money, and 2) placing riskier bets in an attempt to offset the fee on the consumer end. Neither of those is necessarily a great outcome for sportsbooks and states regulating them. Are you going to pay $1.50 on what used to be a $1 parlay? Some might, but the psychology behind it is either you skip betting, or you bet more and/or you try to win more. It’s hard to imagine a bettor just shrugs his or her shoulders when confronted with the fee, unless they’re betting a lot of money already.
The rest of Flutter’s statement
Here’s the rest of the statement from Flutter, which included the Jackson quote:
June 10, 2025 (New York): Flutter Entertainment (NYSE:FLUT; LSE:FLTR), the world's leading online sports betting and iGaming operator, notes the recent decision by the Illinois State legislature to introduce a betting transaction fee for licensed operators on all sports wagers placed within the state from July 1, 2025 (“Illinois Transaction Fee”).
In response, from September 1, 2025, FanDuel, Flutter’s US market-leading brand, announces that it will introduce a new $0.50 transaction fee on each bet placed on its platform in Illinois. This decision reflects the significant increase in the cost of operating in Illinois driven by the new Illinois Transaction Fee. The introduction of this fee by the state follows a substantial increase in the betting tax rate in Illinois in 2024.
Following the 2024 increase, extensive efforts were made by FanDuel to absorb the cost fully without impacting customers. Should the state reverse its decision at any point in the future, FanDuel will immediately remove the $0.50 transaction fee.
FanDuel’s Trusted Voices: Conversations About Betting is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs, risks and proxy betting. The program is led by retired professional basketball player Randy Livingston and his wife, basketball agent Anita Smith, who share their personal stories related to problem gambling, with the hope of preventing others from experiencing similar harms. Learn more and join the conversation here.
Gambling news roundup
Kalshi Volume Report: Tennis Betting Is Biggest Market Last Week (Event Horizon): “Trading volume at Kalshi was still sports-heavy for the week ending June 8, with tennis leading the way as the most traded sport. Betting on the French Open — both on single matches and the men’s and women’s champions — accounted for more than 30% of all trading at Kalshi. Sports accounted for more than 80% of all trading.”
Resorts World Bet Ceasing New York Online Sports Betting Operations (Sports Betting Dime): “Resorts World Bet, one of the nine original New York online sports betting operators, will be calling it quits in the Empire State.
Resorts World Bet notified customers today that it will officially be ceasing operations on Monday, June 30. Resorts World Bet was one of nine sports betting operators to launch in New York on Jan. 8, 2022. It will stop accepting bets and deposits after June 16. Users will be able to withdraw funds through Sunday, June 22.”
Major operators not in New York include Bet365 and Hard Rock Bet.
Maine calls out illegal online gambling, including sweepstakes (Maine Gambling Control Unit press release): “Milton Champion, Executive Director of the Gambling Control Unit within the Department of Public Safety, is issuing this warning to residents and visitors to the State of Maine regarding illegal interactive gaming (“iGaming”) websites and applications that may be currently operating in the State. Despite the legality of online advance deposit wagering, fantasy contests and sports wagering, online casino games like slots, blackjack, and roulette for real money remain strictly prohibited in the State. Numerous unregulated entities continue to target Maine residents, offering illicit iGaming opportunities. These operations, based out of state and often out of the country, include sites that may appear legitimate but lack any regulatory oversight in Maine. Examples of such unlicensed platforms may include, but are not limited to, certain ‘sweepstakes’ or ‘social casino’ sites that offer real-money payouts, coin-titled substitutes, dual-currency systems, material prizes or gift cards.”
EVERYBODY LOSES: on (pre)sale now! (Danny Funt’s Substack): “It won’t be published until January 2026, but preorders, I’ve learned, are crucial to a book’s success. It signals interest to retailers, critics, etc., which can lead them to take the book more seriously. I’d be enormously grateful if you’d consider preordering my book through any of the sellers linked on Simon & Schuster’s website. I’ll have a lot more to share about the contents of the book in the coming months. The inspiration for it was straightforward: I wanted to force the people responsible for the betting boom — and all of us, really — to confront all that’s at stake as billions of dollars are being spent to turn a nation of sports fans into a nation of sports gamblers.”
The sports betting industry may end up not liking what Danny wrote, but he did the work. He even came to see me in my remote outpost in Oregon. I pre-ordered the book.
Not All Tribes Are Getting Rich Off Gaming, But Many Still Depend On The Benefits (InGame): “It was an answer that Jesus Tarango appeared eager to give. Because he meant it. In a forum at SBC Summit Americas 2025 in May focused on the legalization of sports betting in California, the Wilton Rancheria chairman was asked, along with his fellow panelists, the greatest misperception about the Native American gambling business that persists outside of reservations. ‘That we’re all rich, we’re all rich casino Indians,’ he said. ‘‘You guys have ten cars and you’re just living a great life.’ And that’s not the reality for us.’’”
The New Normal: Who Regulates the Regulators? The CFTC and the Future of Gaming Exclusivity (webinar, Wednesday, 10 am Pacific): “As the Commodity Futures Trading Commission continues to assert its authority over prediction markets, tribal and state leaders face a serious threat to sovereignty and gaming exclusivity. The CFTC’s posture - bolstered by legal victories and aggressive positioning from operators like Kalshi - raises fundamental questions about jurisdiction, regulatory overreach, and the future of compact-based gaming in the United States. In this episode of The New Normal, we examine the implications of this regulatory shift and what a coordinated legal and political response might look like. Joining us are James Siva, Chairman of the California Nations Indian Gaming Association, and gaming analyst James Kilsby. Together, we’ll discuss the path forward - what tribes and states can do now to protect their rights before the rules of the game are rewritten without them.”
Oklahoma tribes probably want sports betting only after governor leaves office, he says (Tulsa World, paywall): “People who like to bet on basketball or other sports won’t get to place wagers legally in Oklahoma anytime soon — and possibly not until after Gov. Kevin Stitt leaves office. Stitt, who was asked during the final week of the legislative session if he was disappointed that no sports betting bills made it to his desk, responded that tribal nations may prefer to delay the future of sports betting until after his final day on the job.”
‘I understand’: After suspension for betting, A’s pitcher Michael Kelly tries to start over (The Athletic, paywall): “It took Michael Kelly until he was 31 years old to establish himself as a big league pitcher. There were eight years in the minor leagues — five before he advanced past A-ball. Another season in independent ball, where he had a 5.34 ERA. Then three more years in the minor leagues, punctuated by a couple of call-ups. It was a slog, a fight. It meant everything just to make it to where he was in 2024 — a 2.59 ERA with the then-Oakland A’s, spanning 31 1/3 innings. He’d finally earned a spot. Then, on June 4 of last year, he got popped for betting just $99.22 on baseball, the bets made when he was a minor leaguer. He was suspended for a year. His betting history was made public in a press release by the league. This was now what he was best known for.”
Alberta Puts Parts of New Sports Betting, iGaming Law Into Effect (Covers): “Alberta's government is moving forward with plans for a competitive market for online sports betting and internet-based casino gambling in the Western Canadian province. The province issued a so-called “order in council” on June 4 proclaiming that important sections of Bill 48, the iGaming Alberta Act, came into force the same day. Bill 48 contains the legal framework for Alberta’s planned iGaming market.”
Affinity Interactive Announces Sale of DRF Bets to 1/ST TECHNOLOGY (press release): “Affinity Interactive (the “Company”), the parent company of Daily Racing Form (DRF) announced today the successful sale of its advance-deposit wagering (ADW) platform, DRF Bets, to 1/ST TECHNOLOGY, a division of 1/ST, and the parent company of online betting brands 1/ST BET and Xpressbet. Effective Tuesday, June 10, 2025, Xpressbet will assume full ownership and operational control of the platform, rebranding the product as 1/ST BET PRO. Affinity Interactive and 1/ST TECHNOLOGY have partnered since 2011 to bring DRF Bets to market, with Xpressbet providing back-end technology, wagering, pathways, customer service, and data security. The acquisition marks the next phase in a longstanding relationship between the two organizations.”
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I get the logic, but this isn’t going to make Illinois walk back the tax. Feels more like FD making a point than solving a problem, meanwhile risking user blowback and pushing players offshore. It’s a weird hill to die on