DraftKings Implements 50-Cent Transaction Fee on Illinois Bets Due to New State Tax

DraftKings Inc. (NASDAQ:DKNG) is one of the most active stocks to buy according to analysts. Earlier on June 12, DraftKings announced that it will introduce a 50-cent transaction fee on all mobile and online bets placed through DraftKings Sportsbook in Illinois. This new fee will take effect on September 1 this year.

The decision comes in direct response to recent and prior increases in sports wagering taxes passed by the Illinois state legislature, which apply to all mobile and online sports wagers placed with licensed operators. This move by DraftKings follows a similar announcement by FanDuel earlier this month, which plans to implement an identical 50-cent charge starting July 1, after the introduction of the Illinois Transaction Fee under House Bill 1928.

DraftKings Implements 50-Cent Transaction Fee on Illinois Bets Due to New State Tax

A woman at a betting table paying out customers who won their sports bets.

The new per-bet tax, effective July 1, will impose a 25-cent fee per wager for the first 20 million wagers taken by licensed sportsbooks, increasing to 50 cents per wager thereafter. This is expected to generate ~ $36 million in additional revenue for the state. DraftKings maintains that it supports collaborative policymaking that ensures the long-term sustainability of the industry and contributes to state revenue.

DraftKings Inc. (NASDAQ:DKNG) is an international digital sports entertainment and gaming company. It provides online sports betting, daily fantasy sports, media, digital lottery courier, media, and other products, as well as retail sportsbooks.

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Disclosure: None. This article is originally published at Insider Monkey.