Caesars Sportsbook will begin charging Illinois users a $0.25 fee per wager from 1 September 2025, in response to the state’s new per-wager tax, as stated in its direct communication to Illinois customers. Illinois is the first state to implement this tax model. As a result, sportsbooks are adjusting their policies, including introducing surcharges and minimum bet requirements, and users are beginning to respond.
Understanding the Illinois per-wager tax
The platform will charge Illinois users a $0.25 fee per wager, following the introduction of the state’s new per-wager tax. This tax, passed in May 2024 as part of House Bill 1928, applies only to digital sports bets and came into effect on 1 July 2024. Illinois is the first state to adopt this type of tax structure, prompting sportsbooks to revise their pricing and operational policies.
Under the law, the first 20 million bets placed annually by each operator are taxed at $0.25 per wager, while bets beyond that threshold are taxed at $0.50 each. Larger platforms, such as DraftKings and FanDuel, are more likely to reach the higher tier, whereas smaller operators, like Caesars, may remain in the lower bracket. These changes are already influencing how sportsbooks operate and how users interact with them.
Caesars Sportsbook’s announcement
Though, the platform had already informed its customers that an additional surcharge is coming. In August 2025, Caesars had stated that a fee will be visible during bet placement, shown in the bet slip, and recorded in the bet and transaction history. The surcharge applies to all real-money online bets placed through Caesars’ digital platform.
In the letter to customers, Caesars wrote, “This will be shown during bet placement and indicated in the bet slip and can also be found in your bet and transaction history.”
However, in-person bets at Caesars’ three retail sportsbook locations are not subject to the fee, nor are bonus bets or wagers made using rewards points. If a bet is cancelled or voided, the $0.25 surcharge will be refunded along with the stake.
How other sportsbooks are responding?
DraftKings and FanDuel have introduced a $0.50 surcharge per wager, while Fanatics plans to implement a $0.25 surcharge starting in autumn 2025. These rates reflect the likelihood that DraftKings and FanDuel will exceed 20 million annual bets, placing them in the higher tax bracket under Illinois law.
Other sportsbooks are using minimum bet requirements to avoid per-wager surcharges. BetMGM has set a $2.50 minimum, BetRivers and ESPN Bet require at least $1, Circa Sports has a $10 minimum, and Hard Rock Bet requires $2. Among the ten operators active in Illinois, bet365 has not yet announced its response to the new tax policy.
Why Caesars chose the $0.25 rate?
Caesars opted for the $0.25 surcharge based on its betting volume in Illinois, which has historically remained below 20 million wagers annually. This places it in the lower tax bracket under the state’s per-wager tax law. Although Caesars is a well-known brand nationally, it does not hold a leading market position in Illinois. This influences its pricing strategy and approach to customer retention.
Illinois’ sports betting taxes
Prior to 1 July 2024, Illinois imposed a flat 15 percent tax on sports betting profits. The new system taxes operators based on their adjusted gross revenue, using a sliding scale ranging from 20 percent to 40 percent. This change has increased operating costs for sportsbooks, leading some to pass those costs on to customers. Concerns have been raised following the Illinois Gaming Board’s indication that the surcharge itself may also be subject to taxation.
