Betting on DraftKings, FanDuel? Expect to see Illinois’ new 50-cent fee

Illinois is adding a 25-cent fee to all bets and 50-cent fee to high-volume sportsbooks such as DraftKings and FanDuel starting July 1. Illinoisans lost $1.12 billion in 2024, with $700 million of that on parlays. The new fees will add even more to that total.

July 1 is the start of Illinois’ new sports betting fee: 25 cents on every bet, then 50 cents if a sportsbooks gets more than 20 million bets. Which sportsbooks will cost you that higher, 50-cent fee?

The new fees will mostly hit FanDuel and DraftKings, which each get roughly 300 million bets a year. But competitors such as BetMGM, Caesar’s and others are right on the line, according to data from the Illinois Gaming Board.

FanDuel and DraftKings already announced they will directly pass the fee on to bettors. If the decision drives people to unregulated, illegal sportsbooks, it could stunt the revenue growth the state is expecting.

Illinoisans lost $1.12 billion last year. Of that, $700 million was lost gambling one type of long-shot bet called parlays. A parlay is a bet which requires multiple things to happen for a larger payout, and the odds of winning are often much lower.

Parlays can boost problem gambling. When you win a bet, your brain gets a rush of dopamine, a chemical that makes you feel good. Parlays make this feeling even stronger because each part of the bet that wins gives you a little rush. Even if you lose the parlay by just one part, your brain still reacts like you almost won, which can keep you coming back to place more bets.

People have the right to make bets, but there’s an ethical concern when state lawmakers budget for increased sports betting revenue, basically crossing their fingers hoping Illinoisans lose more bets. Maybe lawmakers need a hotline or support group to help them stop constantly raising taxes to feed their spending addictions.