Caesars Initiates $0.25 Fee Per Wager in Illinois

Key Moments:

Overview of the Illinois Per-Wager Tax

Illinois has introduced a new tax policy for digital sports betting, making it the first state to implement a per-wager tax. Coming into effect on 1 July 2024 as part of House Bill 1928, this law taxes digital sports bets at $0.25 per wager for the first 20 million annual bets by each operator. After this threshold, the tax increases to $0.50 per wager. This new model requires sportsbooks to adapt their pricing structures and business operations, and customers are already seeing these adjustments.

Caesars Sportsbook has an FAQ up for the 25-cent fee it will charge customers in Illinois on all online sports bets, starting Sept. 1. Bonus bets are tax-free*

*for the bettor, not Caesars pic.twitter.com/eyitNwIUpZ

— Geoff Zochodne (@GeoffZochodne) August 26, 2025

Caesars Sportsbook’s Response

Caesars Sportsbook has announced that starting 1 September 2025, all real-money online bets placed by Illinois users will incur a $0.25 fee per wager. Customers had been notified in August 2025 about the upcoming surcharge. According to the platform, “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 be shown in real time as users place their wagers and will appear in both bet slips and transaction history records. However, the fee will not apply to in-person bets placed at any of Caesars’ three retail sportsbook locations in Illinois, nor will it be charged for bonus bets or wagers made using rewards points. In the event of a cancelled or voided bet, the $0.25 surcharge will be returned along with the bet stake.

Competitive Reactions Among Sportsbooks

Other major sportsbooks are implementing similar measures to navigate the new Illinois tax structure. DraftKings and FanDuel have imposed a $0.50 per-wager surcharge, reflecting their expected movement into the higher tax bracket after 20 million annual bets. Fanatics will roll out a $0.25 surcharge in autumn 2025.

A range of minimum wager requirements has emerged as another adjustment strategy. BetMGM has set a $2.50 minimum, BetRivers and ESPN Bet require $1, Circa Sports has a $10 minimum, and Hard Rock Bet mandates $2 per wager. Of the ten operators active in Illinois, bet365 has not yet released details on its response to the law.

Rationale Behind Caesars’ $0.25 Surcharge

Caesars’ decision to apply a $0.25 surcharge aligns with its historical betting volume in Illinois, which has remained under 20 million wagers annually. This keeps Caesars within the lower tax bracket per the state’s new legislation. The operator’s current market position in Illinois has influenced this pricing approach as it adapts to maintain customer engagement amid changing costs.

Details of Illinois Sports Betting Tax Structure

Before 1 July 2024, Illinois taxed all sports betting profits at a rate of 15 percent. The revised system now uses a sliding scale, taxing adjusted gross revenue from sports betting at rates ranging from 20 percent to 40 percent. These policy changes have contributed to increased operating expenses for sportsbooks. The Illinois Gaming Board has indicated that the surcharges collected from bettors may themselves be subject to taxation, adding further complexity for operators.