Caesars Sportsbook is the latest operator in Illinois to introduce a 25-cent fee per online wager, a move that directly reflects the state’s newly enacted per-wager tax. Beginning September 1, customers placing digital bets through Caesars will see the charge added to each wager — a cost that will be clearly shown on the bet slip and in the customer’s transaction history.
The company outlined the details in a letter to Illinois users, stating, “This will be shown during bet placement and indicated in the bet slip, and can also be found in your bet and transaction history.” The surcharge will apply to all types of digital cash bets, including those using profit boosts, but will not affect bonus bets or wagers made with Caesars Rewards points. Voided or canceled bets will have the surcharge refunded.
New Law Spurs Industry-Wide Fee Increases
Caesars follows FanDuel, DraftKings, and Fanatics Sportsbook in passing the state’s new tax directly to consumers. The law, which took effect July 1, imposes a 25-cent tax on the first 20 million online bets an operator takes each year. Any bets over that threshold will be taxed at 50 cents each.
While Caesars typically handles fewer than 20 million annual wagers in Illinois, top performers like FanDuel and DraftKings are expected to cross that threshold by September, meaning they will incur the higher tax rate. Both operators have already confirmed they’ll implement a 50-cent surcharge per wager starting next month.
Minimum Bet Requirements as Alternative Strategy
Other sportsbooks are choosing a different path to offset the impact of the per-wager tax. Operators such as BetMGM, BetRivers, ESPN Bet, Circa Sports, and Hard Rock Bet have opted to introduce new minimum bet requirements instead of adding flat fees.
BetMGM now requires a minimum bet of $2.50, Hard Rock has set a $2 minimum, while both BetRivers and ESPN Bet have raised their minimum from 10 cents to $1. Circa Sports, meanwhile, has imposed the steepest requirement — a $10 minimum — citing its “low-hold, high-volume” business model. Notably, bet365 is the only live sportsbook in Illinois yet to publicly address the tax.
Double Taxation Concern Surfaces
Adding another layer of complexity, the Illinois Gaming Board (IGB) confirmed in a July 10 letter that surcharges imposed by sportsbooks will also be subject to taxation. This means the surcharge itself becomes part of the taxable handle, leading to what some call “double taxation.”
“Illinois law does not prohibit operators from implementing fees related to the placement of online sports wagers,” the IGB stated. “However, doing so will impact adjusted gross sports wagering receipts.”
Adam Hoffer of the non-partisan Tax Foundation noted that taxing the surcharge adds further financial burden for operators, which could eventually translate into additional costs for bettors.
The new per-wager levy is part of a broader overhaul to Illinois’ sports betting tax structure introduced in 2024. The state moved from a flat 15% tax to a tiered system. Operators earning more than $200 million annually now pay a 40% tax on adjusted gross revenue, while those below are taxed at 20%. Caesars currently falls within the 25% tax bracket.
Source:
“Caesars Sportsbook To Impose 25-Cents Per-Wager Surcharge In Illinois”, sports.yahoo.com, August 25, 2025
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