Illinois sports betting has left many bettors frustrated by extra fees and rising minimums. In an effort to combat a first-of-its-kind state tax, major operators like DraftKings, Caesars, and Fanatics have passed "gaming tax surcharges" directly to their customers.These fees—ranging from 25 to 50 cents per wager—can significantly eat into a bettor's bankroll over time.
However, the landscape just changed in a major way. FanDuel, which previously led the charge in implementing these fees, has announced a temporary reversal, vaulting it back to the top of the list for Illinois bettors looking to avoid extra costs. FanDuel now competes with bet365, BetMGM, and Hard Rock as Illinois sportsbooks that don't implement per-tax wagers.
FanDuel Temporarily Tax Free: A Win for Illinois Bettors
In a surprising move, FanDuel is temporarily pausing its per-wager surcharge in Illinois.The Flutter-owned giant announced it will waive the 50-cent per-wager fee through June 19, 2026—coinciding with the latest possible date for the NBA Finals.
As of now, FanDuel is the only licensed operator in the state to backtrack on its transaction fees. While the company has not officially disclosed its reasoning, the timing is notable as state lawmakers debate a potential repeal of the tax law that started the IL sportsbook tax trend.
Why the Surcharge Existed
FanDuel originally imposed the 50-cent fee in September 2025 to offset Illinois' "per-wager" tax. The fee was meant to help the operator cover these costs imposed by the state:
$0.25 tax on each of the first 20 million wagers per operator annually.
$0.50 tax on every wager once an operator exceeds that 20 million threshold.
FanDuel is the highest-volume book in the state, surpassing the 20 million mark in less than six months.To date, FanDuel and DraftKings have combined to pay over $50 million in per-wager taxes to the state of Illinois.
Illinois Sportsbooks: Fee and Minimum Bet Comparison
If you’re looking for the best value, here is how the top Illinois sportsbooks currently compare.
FanDuel: $0.00 Per-Bet Surcharge (Paused until June 19, 2026) | Standard Minimum
bet365: $0.00 Per-Bet Surcharge | Standard Minimum
BetMGM: $0.00 Per-Bet Surcharge | $2.50 Minimum Bet
Hard Rock: $0.00 Per-Bet Surcharge | $2.00 Minimum Bet
DraftKings: $0.50 Per-Bet Surcharge | Standard Minimum
Caesars: $0.25 Per-Bet Surcharge | Standard Minimum
Fanatics Sportsbook: $0.25 Per-Bet Surcharge | Standard Minimum
Currently, bet365 and FanDuel are the most favorable sportsbooks in Illinois for those who want to avoid per-bet taxes. When FanDuel once again implements the tax, bet365 will likely be the favorite.
Related: bet365 Illinois Bonus Code & Review
While Hard Rock and BetMGM have notably avoided per-bet surcharges in Illinois from the start, they have adjusted in other ways. For instance, BetMGM now requires a $2.50 minimum on all Illinois wagers, while Hard Rock has a $2.00 minimum in place.
The Legislative Battle: Will the Tax Disappear?
FanDuel Illinois’ decision to drop the fee comes as House Bill 5143, proposed by Rep. Daniel Didech, gains traction. This measure seeks to repeal the per-wager tax entirely by July 1, 2026.
Important Deadline: Illinois House members must send HB 5143 to the Senate by April 17, 2026, for it to remain viable this session.
This isn't the only tax hurdle operators are facing. In addition to a sliding revenue tax scale (which peaks at 40%), Chicago bettors are dealing with Mayor Brandon Johnson’s 10.25% local tax on online wagers. Rep. Didech is also leading a separate effort (HB 4171) to repeal that local Chicago tax.
What This Means for You
With FanDuel Illinois temporarily removing its fee, it has once again become a prime destination for "price shopping."
Small Bettors Win: For those placing $2 or $5 bets, a 50-cent fee is a massive percentage of the wager. FanDuel and bet365 are currently the most "small-bet friendly" options.
Watch the Calendar: FanDuel's fee holiday is set to expire on June 19. Unless the state legislature passes the repeal bill (HB 5143) before then, the 50-cent surcharge could return for the summer, making it more challenging to place small wagers on events such as the World Cup 2026.
Check the Minimums: If you prefer using BetMGM or Hard Rock to avoid fees, keep in mind you'll need to bet at least $2.50 or $2.00, respectively.
For now, the momentum in Illinois is shifting back toward the consumer, with FanDuel leading the way by absorbing the state's tax burden—at least through the end of the basketball season.
