FanDuel has temporarily stopped charging its per-bet fee in Illinois, a move that comes as state lawmakers continue to debate the future of the controversial wagering tax. The company confirmed it will suspend the 50-cent surcharge on bets placed in the state through June 19, a date that aligns with the potential end of the NBA Finals.

The decision marks a shift from FanDuel’s earlier approach. The sportsbook introduced the fee in September 2025 after Illinois implemented a per-wager tax system. That system requires operators to pay 25 cents per bet for the first 20 million wagers annually, with the rate doubling to 50 cents once that threshold is exceeded. FanDuel crossed the 20 million wager mark in less than six months, triggering the higher rate.

Despite the policy change, the company has not publicly explained why it is removing the surcharge for now. FanDuel informed customers via email and social media but declined to provide additional context when asked. Other licensed operators in Illinois have not followed suit, with some instead adjusting their strategies by raising minimum bet requirements to offset the tax burden.

Temporary Policy Change Amid Legislative Uncertainty

The timing of FanDuel’s move has drawn attention as Illinois lawmakers consider House Bill 5143, introduced by state Rep. Daniel Didech. The proposal seeks to eliminate the per-wager tax entirely. Although the bill has received support in committee discussions, it remains stalled after being sent back to the House Rules Committee.

For the measure to advance this year, it must pass out of the House and move to the Senate by April 17. If approved and signed into law, the repeal would take effect on July 1. FanDuel has previously indicated it would permanently remove its surcharge if the state reverses the tax policy.

The per-wager tax is just one part of Illinois’ broader approach to regulating online sports betting. In 2024, Governor JB Pritzker approved a progressive tax structure that applies rates ranging from 20% to 40% based on sportsbook revenue. Operators generating more than $200 million in adjusted gross revenue face the highest rate.

Local taxes add another layer. Chicago introduced a 10.25% tax on online sports betting revenue generated within city limits, which took effect at the start of 2026. The policy has already sparked legal challenges, with the Sports Betting Alliance arguing that municipal taxation and licensing overstep state authority.

Impact on Betting Behavior and Market Competition

FanDuel’s temporary fee removal could influence betting activity, according to InGame, particularly in the parlay segment, which plays a major role in its revenue model. More than 65% of the company’s adjusted gross revenue for the current fiscal year has come from multi-leg bets, including same-game parlays.

While FanDuel has improved its performance metrics, the volume of parlay bets has declined. The number of such wagers dropped by 19.4% to 53.3 million, and total parlay handle fell by 9.1% to $1.04 billion. The decline has been linked to the surcharge, which discouraged smaller, multi-leg bets often placed during high-traffic periods like the NFL season.

At the same time, FanDuel’s hold rate on parlays has increased to 20.6%, reflecting stronger operator performance. The average parlay bet has also risen, climbing from $17.27 to $19.48.

Competitor DraftKings has taken a different approach, choosing not to apply its surcharge to parlays of $10 or more. That strategy appears to have paid off, as DraftKings reported a 20.5% increase in parlay handle, reaching $1.05 billion. Its parlay revenue jumped 33% year over year, supported by a higher average wager size and improved win rate.

FanDuel’s earlier decision to apply a universal surcharge may have opened the door for rivals to gain ground in this key segment. The temporary removal of the fee could help the company regain some of that lost momentum, depending on how bettors respond in the coming weeks.

High Tax Burden Shapes Industry Decisions

The financial impact of Illinois’ tax structure on operators remains significant. FanDuel alone has contributed more than $32.8 million through the per-wager surcharge between July and January. Combined with other obligations, including state taxes and local levies, its effective tax rate has reached 44.2%.

Overall, FanDuel and DraftKings have paid more than $50 million in per-wager taxes in the state. Additional costs include county-level taxes and Chicago’s municipal levy, further increasing the financial pressure on operators.

These conditions have led sportsbooks to adopt varied strategies to manage costs, from implementing fees to adjusting betting limits. FanDuel’s latest move introduces a different approach, at least temporarily, as the industry watches closely for potential legislative changes.

With the June 19 deadline approaching, the suspension of the fee may serve as a short-term test of how pricing influences bettor behavior. At the same time, the outcome of ongoing legislative efforts will likely determine whether such fees remain part of the Illinois sports betting landscape.