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As part of Illinois' state budget, sports betting taxes for operators have been levied. Effective July 1, 2025, the state is charging sportsbooks $0.25 per wager for the first 20 million bets per operator, followed by $0.50 per wager beyond that. (Source - Illinois Gaming Board). Several operators have begun charging anyone participating in Illinois sports betting to make up their lost revenue. Each operator has mandated either a betting minimum per wager or is charging a tax on each bet. Only DraftKings offers the ability for customers to avoid either minimums or a tax. Sign up for DraftKings Sportsbook here:

Illinois Sportsbooks with taxes but no minimum betting limits*

  • bet365: $0.25 on bets under $10
  • Caesars: $0.25 per bet
  • DraftKings: $0.25 (first 20 million total bets) / $0.50 per bet (above 20 million total bets) with exceptions^
  • Fanatics: $0.25 per bet
  • FanDuel: $0.50 per bet

^DraftKings waives the fees for parlay bets of $10 or more, straight wagers of $50+, or bonus bets. Any DraftKings player who is in the Silver tier or above will not be charged any bet fees. 

Of these five sportsbooks, DraftKings is the only one offering the ability for bettors to avoid being taxed on each bet:

Illinois Sportsbooks with minimum betting limits but no taxes*

  • BetMGM: $2.50 minimum per bet (sign up for BetMGM Sportsbook here)
  • BetRivers: $1 minimum per bet
  • Circa: $10 minimum per bet
  • ESPN Bet: $1 minimum per bet
  • Hard Rock Bet: $2 minimum per bet

Bettors can avoid any taxes by playing any any of these sportsbooks with the minimum bet restriction in place.

*Sportsbook fees current as of 10/30/25

Sportsbook recommendations based on taxes and minimums

If you're a smaller bettor (average unit size $5 or less), playing at BetMGM, BetRivers, ESPN Bet, or Hard Rock Bet make the most sense as you won't be charged a fee on each bet you make. Similarly, those books and Circa ($10 minimum bet) make the most sense for most bettors to avoid any excess taxes added on to their bet.

If you're a larger bettor ($50 or more straight wagers, $10 or more for parlays), DraftKings is the way to go as similarly you won't be charged a betting tax at those wager amounts.

More Taxes for Sportsbooks

When sports betting launched in Illinois in 2020, betting operators had to pay a flat 15% tax on any revenue they earned. Now the structure has changed which further benefits the state.

  • 20% on the first $30 million in sports betting revenue
  • 25% on revenue between $30-$50 million
  • 30% on revenue between $50 million and $100 million
  • 35% on revenue between $100 million and $200 million
  • 40% on revenue above $200 million

In 2024, FanDuel earned $491 million in revenue, while DraftKings earned $418 million. Combined, both operators paid taxes over $200 million to the state.

Maryland, Ohio, New Jersey, and Louisiana are also looking to increase taxes on sports betting operators in order to create additional revenue for their respective states.