### DraftKings Follows FanDuel in Implementing Transaction Fees Amid Illinois Tax Increases - In June 2025, DraftKings announced it would introduce a transaction fee for sports bets in Illinois, becoming the second major operator to do so after FanDuel. This decision comes in response to recent tax increases imposed by the Illinois state legislature on mobile and online sports wagers, which have raised operational costs for sportsbooks [https://igamingbusiness.com/sports-betting/draftkings-introduces-illinois-transaction-fee]. - The new tax structure includes a fee of 25 cents per bet for the first 20 million wagers and 50 cents for each wager thereafter, significantly impacting the profitability of sports betting operators in the state [https://www.cnbc.com/2025/06/10/fanduel-draftkings-surcharge-illinois-taxes.html]. ### Overview of the Transaction Fee Implementation 1. **Background of Tax Increases**: The Illinois state legislature has enacted tax increases on sports betting, prompting operators to adjust their pricing strategies to maintain profitability [https://www.finanznachrichten.de/nachrichten-2025-06/65656603-draftkings-to-introduce-transaction-fee-in-illinois-399.htm]. 2. **FanDuel's Initial Response**: FanDuel was the first to respond to these tax changes by introducing a $0.50 surcharge on all bets placed in Illinois, effective September 1, 2025 [https://www.indexbox.io/blog/fanduel-introduces-surcharge-on-illinois-bets-due-to-new-state-tax]. 3. **DraftKings' Follow-Up**: Following FanDuel's lead, DraftKings announced its own transaction fee, indicating a trend among major sportsbooks to pass on increased costs to consumers [https://igaming.org/sports-news/fanduel-adds-illinois-betting-fee-after-state-hike-leaves-no-choice]. 4. **Market Implications**: The introduction of these fees is expected to affect betting costs and market dynamics, as operators adjust to the new tax landscape [https://www.stocktitan.net/news/FLUT/flutter-response-to-illinois-transaction-s95qnegeyg7l.html]. ### Supporting Evidence of Tax Impact - **Fee Structure**: The Illinois tax is structured as follows: - **First 20 million wagers**: 25 cents per bet - **Subsequent wagers**: 50 cents per bet - **Operator Responses**: - FanDuel has confirmed a $0.50 surcharge on all bets starting September 1, 2025 [https://chicago.suntimes.com/casinos-gambling/2025/06/10/sports-betting-tax-illinois-fanduel-draftkings-general-assembly-budget]. - DraftKings has followed suit, indicating a broader trend among sportsbooks to implement transaction fees in response to state tax increases [https://www.gamblingnews.com/news/fanduel-responds-to-illinois-tax-changes-with-a-surcharge]. ### Conclusion: The Shift in Illinois Sports Betting Landscape 1. **Introduction of Transaction Fees**: Both DraftKings and FanDuel have introduced transaction fees in Illinois as a direct response to increased state taxes, marking a significant shift in the sports betting landscape [https://igamingbusiness.com/sports-betting/draftkings-introduces-illinois-transaction-fee]. 2. **Consumer Impact**: These fees will likely lead to higher costs for bettors, as sportsbooks pass on the financial burden of the new tax structure [https://www.finanznachrichten.de/nachrichten-2025-06/65656603-draftkings-to-introduce-transaction-fee-in-illinois-399.htm]. 3. **Market Dynamics**: The implementation of these fees may alter competitive dynamics among sportsbooks, as operators navigate the challenges posed by state regulations and tax policies [https://www.indexbox.io/blog/fanduel-introduces-surcharge-on-illinois-bets-due-to-new-state-tax]. In summary, the introduction of transaction fees by DraftKings and FanDuel in Illinois reflects a significant adaptation to the evolving regulatory environment, with potential implications for both operators and consumers in the sports betting market.