Prairie State Wire

The Illinois House Republican Caucus has announced that FanDuel will implement a $0.50 transaction fee on every online wager in Illinois. This measure is intended to cover the cost of a new sports betting tax enacted by Democratic lawmakers. The announcement was made on the social media platform X.

According to the Chicago Sun-Times, FanDuel's decision to charge this fee follows the passage of a state law that significantly raises taxes on sports betting operators. The law, supported by Democratic legislators, has led industry leaders to reconsider their pricing strategies within Illinois. The newspaper reports that this development could alter the sports betting landscape in the state, impacting both consumers and market competition.

The Associated Press explains that the new Illinois sports betting tax law has increased the top tax rate from 15% to 40%, marking it as the highest in the nation. FanDuel has said that the $0.50 transaction fee will be applied to every bet, regardless of its size or outcome, as a means to offset the state's new tax burden. Other major operators, such as DraftKings, are reportedly evaluating their own pricing structures and may adopt similar measures.

WGN-TV reports that industry experts estimate this $0.50 per bet fee could cost regular bettors several hundred dollars annually, potentially making sports betting less affordable for many residents of Illinois. Critics argue that this fee shifts the tax burden from large gambling companies to everyday consumers and may drive bettors towards out-of-state or unregulated markets. According to WGN-TV, this fee announcement coincided with budget negotiations led by Democratic lawmakers, which resulted in the historic increase in sports betting taxes.

The IL House GOP represents Republican members of the Illinois House of Representatives and focuses on promoting fiscal discipline, lowering taxes, and enhancing government accountability. According to their official website, they oppose legislation that increases financial burdens on residents and strive to represent taxpayers' interests in Springfield.