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This month and until January is the peak sports betting period. Not only in Illinois, but throughout the country. Of course, that’s because of college and NFL betting.
For states, that betting activity picks up extra if the local teams are excelling. For Illinois sports betting, that largely hinges on the Chicago Bears. The hot-and-cold NFL team has been exactly that after three weeks. Two bad losses, but also a blowout win last time out versus the Cowboys.
But while bettors are throwing money on the Bears spread or a Caleb Williams prop bet, there’s a little surprise waiting for them at top mobile betting apps — a surprise they’re likely not even aware of. Operators are either hitting them with fees or forcing them to bet a minimum amount. This is all in response to a new Illinois betting tax. Instead of eating that tax themselves, operators are passing it on to customers… go figure! Keep reading to see how it’s happening.
Customers Are Footing The New Tax
So you may remember back in July when Illinois revamped its sports betting tax. They implemented a tax on every single bet made. It starts at 25 cents on the first 20 million wagers a single sportsbook takes in during the year. However, the fee goes up to 50 cents per bet for any and all bets after the 20 million mark.
The 50-cent fee only hits DraftKings and FanDuel, who both do enough bets to hit the 20 million threshold. They were angered when news of the rule came out, but now, they’ve countered. So has every other licensed sportsbook in Illinois. Each has adopted a new policy to cover the new expense, and it’s showing up right now. Though many have gone about the counter-attack differently.
For example, BetMGM now requires a $2.50 minimum on wagers. Circa Sports went even higher, setting a $10 minimum per bet. Hard Rock Bet landed in the middle with a $2 minimum. BetRivers and ESPN Bet are at $1 minimum.
Other books decided to slap on fees instead. Caesars, Bet365, and Fanatics are each charging a flat 25-cent service fee per bet. FanDuel is going bigger at 50 cents. DraftKings falls in both camps — charging 25 to 50 cents depending on volume, but carving out exceptions for larger wagers and parlays.
Those exceptions mean DraftKings has by far the most complex rules around the new tax. Small bets are subject to a 25-cent fee, but straight bets above $50 and parlays above $10 avoid the charge. Bonus bet wagers are also exempt. There’s also a VIP element baked in. DraftKings Silver-tier members or higher are off the hook entirely, at least until the operator processes 20 million bets in a fiscal year. Once that threshold is hit, the state tax rises to 50 cents per bet, and DraftKings plans to pass that extra cost along, too.
The takeaway? If you’re betting with DraftKings in Illinois, your experience will depend on the size of your bets, how often you wager, and what tier you fall into.
Why Illinois Bettors Are Paying The Price
So why are Illinois operators nickel-and-diming players? After all, other states have raised taxes, not just Illinois. In those affected states, we didn’t see operators tacking on new fees. So what gives here?
The short answer: this is Illinois’ second tax increase in two years. In 2024, Governor JB Pritzker signed off on a scaled tax rate that climbed as high as 40 percent for the biggest earners in the market (before, the tax rate was 15 percent flat). That was already one of the steepest taxes in the country, but it didn’t stop them from doing a second tax.
If Illinois lawmakers are going to treat the industry like a personal ATM machine, well, the sportsbooks weren’t just going to let themselves get robbed blind. The math simply wasn’t matching anymore after the changes. So rather than absorbing the new costs, they’re shifting them onto customers. Womp womp womp. Tax wars, per usual, end up hurting the everyday person the most. Perhaps that’s an omen to non-betting Americans due to tariffs… but that’s a story for another day.
What It Means For Football Season
Like we said, college football and the NFL drive the biggest betting volume of the year. This is when most states set sports betting records, including Illinois during January 2025. So bettors will feel the sting of these fees over the coming month. Bettors who fire off small wagers will feel it first — fees on $5 or $10 bets eat away at winnings quickly. On the flip side, bigger bettors may dodge fees altogether if they play within certain rules.
It’s a frustrating situation, but it’s the reality in Illinois. Bettors will have to adapt: either by raising their average wager size to avoid fees, picking operators with the lowest charges, or accepting that every Sunday ticket will cost more than it did a year ago.
The bottom line? The biggest losers out of this whole ordeal are the bettors. Both the state and sportsbooks will now do more betting revenue and tax. Bettors? They’ll have to perform even better to make more profits. It’s unfortunate, but that’s just the way it’s gonna be in Illinois for now.
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