Flutter Entertainment, the company behind Paddy Power, has commented on Illinois’s new betting transaction fee for licensed sports betting operators, starting next month.
On May 31, the Illinois State Legislature approved a $55.2 billion budget that includes a fee of 25 to 50 cents per sports wager. From July 1, sportsbooks will pay a 25-cent tax on each of the first 20 million bets placed in the state each fiscal year, and a 50-cent tax on every bet after that. This cost could be passed on to bettors.
In response, FanDuel, owned by Flutter, announced on June 10 that starting September 1, 2025, it will add a $0.50 fee to every bet placed on its platform in Illinois.
FanDuel explained that this decision comes due to the higher operating costs caused by the new Illinois Transaction Fee. The company said it tried hard to cover these costs without affecting customers, especially after a 2024 fee increase. However, FanDuel noted that if Illinois reverses this fee in the future, it will immediately remove the $0.50 transaction fee.
Flutter says Illinois betting transaction fee ‘disappointing’
Flutter CEO, Peter Jackson, stated: “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.”
Jackson said that the company was “disappointed” by the fee, which would “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.”
The executive also stated that the new Illinois Transaction Fee might push some Illinois customers to place bets 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,” he added.
SBA's statement on the new Illinois sports betting tax: pic.twitter.com/E7EWoxgipG
— Sports Betting Alliance (@SBAllianceUS) June 2, 2025
The Sports Betting Alliance (SBA), which represents major online and brick-and-mortar sportsbooks, also vowed, “This is not the end of this conversation. We will continue to fight this discriminatory tax alongside our customers – both right now in Illinois and in any state that considers these harmful tax changes in the future.”
Featured image: Flutter / Canva
