In September 2025, Illinois saw a shift in its sports betting landscape as sportsbooks recorded a decline in the number of wagers but an increase in total handle. According to the Illinois Gaming Board, the state experienced a 15% decrease in the number of online bets compared to the previous year, with wagers falling from 35.7 million in September 2024 to 30.2 million in September 2025. Despite this drop, the overall handle rose by 9%, reaching $1.42 billion. This surprising trend emerged as a result of new customer surcharges introduced by major operators like FanDuel and DraftKings, which are reshaping the betting dynamics in the state.
The introduction of these surcharges came after Illinois implemented a per-wager tax, prompting operators to adjust their business strategies. Flutter CEO Peter Jackson commented that the shift in customer behavior was anticipated, with bettors opting for fewer but larger bets due to the additional costs. This change has placed Illinois at the forefront of adapting to these new market conditions.
The state’s decision to impose a surcharge of 25 cents per wager, increasing to 50 cents after an operator surpasses 20 million bets annually, has significantly impacted the top operators. FanDuel and DraftKings, both having crossed this threshold, reported substantial contributions to the state’s revenue, with FanDuel contributing nearly $4.5 million and DraftKings close to $4.1 million in surcharges. Together, they accounted for more than 80% of the state’s total surcharge collection in September. Illinois collected $10.5 million from the per-wager tax that month, surpassing the combined totals of July and August, with over $21 million generated in the first three months of the fiscal year.
However, the increased surcharges have not come without challenges. Operators reported a 26.2% decline in adjusted gaming revenue (AGR) for September, partly due to the way surcharges are now integrated into the AGR figures. The Illinois Gaming Board confirmed that these customer fees are included in the reports, adding another layer of complexity to the financial landscape of sports betting in the state. While FanDuel and DraftKings implemented their surcharge systems on September 1, other operators like Fanatics, bet365, and Caesars have indicated plans to adopt similar fees. Meanwhile, some operators have opted for minimum stake requirements instead, likely influencing the increase in average bet size.
Illinois has become one of the most expensive markets in the United States for sports betting due to its multiple tax structures. In addition to the per-wager tax, the state applies a progressive AGR tax that can reach up to 40%, more than triple its previous flat rate. In September alone, Illinois collected $27.8 million in betting tax revenue, totaling $99 million for the first fiscal quarter. Cook County’s separate 2% regional tax contributed an additional $1.1 million.
Looking ahead, Chicago Mayor Brandon Johnson’s proposal for a 10.25% city-level tax on revenue from bets placed within Chicago presents further challenges for sportsbooks in the area. This new tax would be in addition to both statewide taxes. In response, a bipartisan group of lawmakers swiftly filed HB4171, a bill aiming to block this measure, indicating the contentious nature of the proposed tax increase.
As Illinois’ market adapts to these new financial pressures, bettors appear to be modifying their behavior, opting for higher stakes but fewer bets. The evolving landscape raises questions about how sportsbooks will adjust their strategies to remain competitive and sustainable under increasing regulatory costs. The industry’s future in Illinois will likely depend on how operators balance these additional expenses while maintaining their customer base amid these economic changes.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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