FanDuel introducing shocking new betting surcharge after controversial tax passed

New York Post

10-06-2025

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FanDuel's antagonistic response to the Illinois state legislature is not going to go over well with bettors in the Prairie State.
Flutter, the parent company of the gaming giant, announced Tuesday that starting Sept. 1, each bet made at FanDuel will be subject to a 50-cent transaction fee, no matter the amount of the wager or whether it wins or loses.
The unpopular decision, which will come into action right before the start of the NFL season, was made in response to a surprising set of new taxes passed by Illinois lawmakers last week.
The new levy subjected sportsbooks operating in the Land of Lincoln to a 25-cent tax for the first 20 million bets and 50 cents per bet beyond that.
The new taxes were passed in the middle of the night, without much warning, and understandably upset the bookmakers operating in the state.
Instead of trying to work with the lawmakers, FanDuel has chosen to essentially pass the buck to the customer.
'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,' Flutter CEO Peter Jackson said in a company release.
The new surcharge will be unpopular across the board, but it will be a real kick to recreational punters who prefer to bet small amounts at a time.
The Illinois State Legislature raised taxes on sports betting companies.
Randy Runtsch – stock.adobe.com
If you're going to build a six-team parlay for $2 in Week 1 of the NFL season in Illinois, you'd essentially be paying a 25% tax on your wager.
'We are disappointed that the Illinois Transaction Fee will 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,' Jackson said.
Jackson also noted that the surcharge would be removed if Illinois reversed the new tax hike.
FanDuel is quote popular during the NFL season.
Getty Images
This is not the first time that one of the sports betting heavyweights has tried a pass-the-buck approach to new legislation.
Last year, DraftKings tried to combat high taxes in states like New York by adding a surcharge to every winning bet in certain states.
The decision was panned, and DraftKings walked it back before implementation.
Betting on the NFL?
It is unclear if this decision by DraftKings' biggest rival will put that plan back in motion.
What is clear is that, in this ongoing battle between the House and the House, there is always going to be one loser: The Punter.
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Michael Leboff is a long-suffering Islanders fan, but a long-profiting sports bettor with 10 years of experience in the gambling industry. He loves using game theory to help punters win bracket pools, find long shots, and learn how to beat the market in mainstream and niche sports.