- Flutter Entertainment to implement a $0.50 transaction fee for bets on FanDuel in Illinois from September 1, 2025.
- The fee is a response to a new state-mandated betting transaction fee effective July 1, 2025.
- CEO Peter Jackson emphasizes the fee's potential negative impact on recreational bettors and the shift to unregulated markets.
Flutter Entertainment (FLUT, Financial), the leading global online sports betting and iGaming operator, has announced it will introduce a $0.50 transaction fee for bets placed via its FanDuel platform in Illinois starting September 1, 2025. This decision is in reaction to a state-mandated betting transaction fee that becomes effective July 1, 2025.
CEO Peter Jackson expressed disappointment with the new Illinois state fee, stating that it could disproportionately affect recreational bettors who tend to place smaller, frequent wagers. Jackson noted that this change might drive customers towards unregulated betting operators, which lack consumer protection measures provided by regulated platforms like FanDuel.
Previously, Flutter's FanDuel absorbed the 2024 Illinois betting tax rate increase without passing the cost on to customers. Jackson highlighted Flutter's commitment to remove the $0.50 transaction fee should Illinois reverse its decision, reflecting the company's strategic approach to navigating regulatory challenges.
This development is a critical test case in the evolving regulatory landscape for US sports betting. It emphasizes the need for states to balance the desire for increased revenue through gaming taxes and fees with maintaining a viable, regulated market. Flutter's response exemplifies the company's proactive measures in addressing regulatory changes while considering customer implications.
