Flutter response to Illinois Transaction Fee
- FanDuel previously absorbed the 2024 tax increase without impacting customers
- Company demonstrates flexibility by committing to remove the fee if state reverses decision
- Introduction of $0.50 transaction fee per bet may reduce customer activity
- New state fee could drive customers to unregulated betting operators
- Increased operational costs in Illinois market
- Disproportionate impact on recreational customers with lower wagering amounts
Insights
Flutter will pass Illinois' new transaction fee to customers, potentially driving users to illegal betting markets and hurting recreational players.
Flutter's announcement signals meaningful regulatory headwinds in Illinois, a significant US market. The company is implementing a
The decision has several important implications. First, by charging per transaction rather than as a percentage, the fee structure will disproportionately impact recreational bettors who typically place smaller, more frequent wagers. High-volume, low-stake players will face the highest relative cost increase, potentially altering betting behavior.
Second, this creates competitive vulnerability by potentially driving customers to offshore, unregulated betting platforms that operate without such fees or consumer protections. The Illinois market could see fragmentation between legal and black market operators.
Third, this represents an important test case in the evolving regulatory landscape for US sports betting. States seeking revenue through gaming taxes and fees must balance short-term revenue generation against maintaining viable regulated markets. Flutter's conditional commitment to remove their fee if the state reverses course creates negotiating leverage and demonstrates the company's strategic approach to regulatory challenges.
The timing - implementing the fee two months after the state mandate takes effect - suggests Flutter is allowing time to measure initial impact and potentially negotiate with regulators before passing costs to consumers.
NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- Flutter Entertainment (NYSE:FLUT; LSE:FLTR), the world’s leading online sports betting and iGaming operator, notes the recent decision by the Illinois State legislature to introduce a betting transaction fee for licensed operators on all sports wagers placed within the state from July 1, 2025 (“Illinois Transaction Fee”).
In response, from September 1, 2025, FanDuel, Flutter’s US market-leading brand, announces that it will introduce a new
Should the state reverse its decision at any point in the future, FanDuel will immediately remove the
Peter Jackson, Flutter CEO, commented: “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. 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. We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”
Media contacts
Lindsay Dunford, Corporate Communications
Rob Allen, Corporate Communications
Email: corporatecomms@flutter.com
About Flutter Entertainment plc
Flutter is the world’s leading online sports betting and iGaming operator, with a market leading position in the US and across the world. Our ambition is to leverage our size and our challenger mindset to change our industry for the better. By Changing the Game, we believe we can deliver long-term growth while promoting a positive, sustainable future for all our stakeholders. We are well-placed to do so through the distinctive, global advantages of the Flutter Edge, which gives our brands access to group-wide benefits, as well as our clear vision for sustainability through our Positive Impact Plan.
Flutter operates a diverse portfolio of leading online sports betting and iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, Snai, tombola, Betnacional, Betfair, MaxBet, Junglee Games and Adjarabet. We are the industry leader with
To learn more about Flutter, please visit our website at www.flutter.com.
Forward-Looking Statements
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FAQ
What is Flutter's new transaction fee in Illinois and when does it start?
Why is FLUT implementing a new fee in Illinois?
How will the new Illinois Transaction Fee affect Flutter's business?
Will Flutter remove the $0.50 transaction fee in Illinois?
How did Flutter handle the previous Illinois tax increase in 2024?
