Caesars Sportsbook Adds $0.25 Fee per Online Bet in Illinois, Citing New State Tax

A Response to Illinois’ New Per-Bet Tax

The new fee is a reaction to House Bill 1928, which was approved by Illinois lawmakers in May and went into effect in July. The controversial law levies a $0.25 tax on each online wager up to a threshold of 20 million bets for each operator. After that threshold is met, the tax increases to $0.50 per bet.

Caesars’ new $0.25 fee is designed to directly offset the initial tier of this state-mandated tax, a strategy aimed at protecting the company’s profit margins.

How the New Fee Will Be Applied

Caesars has outlined the specifics of how the new fee will be implemented for its customers.

• The $0.25 charge will be applied to all online cash wagers, including those made with profit boosts.
• The fee will not be charged on bets placed using bonus funds or Caesars’ Reward Credits.
• The charge will be refunded along with the original stake if a wager is voided or canceled.

To ensure transparency, the fee will be clearly displayed on the bet slip before a wager is confirmed and will also be itemized in a user’s transaction and betting history. The policy does not affect in-person wagers placed at Caesars’ retail sportsbooks in Illinois, such as at Grand Victoria Casino Elgin.

Part of a Wider Industry Trend in Illinois

Caesars is not the only operator adjusting its business model in response to the new tax. In fact, a market-wide shift is underway as companies grapple with the new cost structure.

• FanDuel and DraftKings have both implemented a higher, $0.50 per-bet fee.
• Fanatics Sportsbook has also set its fee at $0.25.

Other operators have opted for a different approach. BetRivers and Circa Sports have chosen to introduce minimum bet requirements of $1 and $10, respectively, rather than charging a per-bet fee.