DraftKings Responds to New Illinois Betting Tax

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

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Last updated: June 23, 2025

DraftKings CEO and co-founder Jason Robins is not happy with the recent sports betting tax hike in Illinois, calling it “incredibly ill-conceived” and warns that it could negatively impact both the industry and its consumers.

A Surprise with Consequences

In a straightforward interview with CNBC, Robins stated that the abrupt introduction of the tax caught operators off guard and will likely force major platforms, such as DraftKings and FanDuel, to shift the financial burden onto their bettors.

According to the new law, Illinois will impose a fee of 25 cents on each online wager for the first 20 million bets, increasing to 50 cents per bet thereafter. Robins argues that these rates make it nearly impossible for operators to remain profitable without raising costs for users.

In response, DraftKings and FanDuel intend to implement a 50-cent surcharge on every bet starting September 1, though they’ve indicated that they will remove the fee if a compromise can be reached.

Pushing Players Towards Black Markets

Robins emphasized that the issue extends beyond just profitability. He warns that the tax hike could push users toward unregulated offshore betting sites, which operate tax-free and lack consumer protections.

As he pointed out in the interview, smaller operators are also required to pay a 25-cent tax per bet for the first 20 million wagers, increasing to 50 cents per bet beyond that. While they may not impose surcharges as significant as those planned by DraftKings and FanDuel, Robins fears that Illinois bettors might turn to the black market or increase their betting activity in an attempt to offset the added transaction costs.

Although the tax impacts all operators, Robins believes that DraftKings and FanDuel will bear the brunt of it, even as smaller companies also face similar financial strain.

Since Governor J.B. Pritzker took office in 2019, Illinois has passed 50 tax increases. According to Robins, many lawmakers may not fully realize that this latest tax is tied to total betting volume or gross receipts rather than actual profits.

While other states may not adopt Illinois’ per-bet taxation model, Robins cautions that escalating tax rates nationwide could stifle innovation and ultimately disadvantage consumers.