Caesars Becomes Latest Sportsbook to Impose Surcharge ($0.25) in Illinois

Caesars Sportsbook is the latest operator to respond to Illinois’ new per-bet tax by imposing a $0.25 surcharge on all bets starting September 1.

On Monday, August 25, the operator notified customers of its decision on the surcharge. In an email obtained by InGame, the sportsbook shared more details:

“This [surcharge] will be shown during bet placement and indicated in the bet slip, and can also be found in your bet and transaction history.

“The change will apply to all cash bet types and include profit boost wagers, however, bonus bets and bets placed with Reward Credits will be excluded. Any wager voided or cancelled will have the tax refunded with the bet stake.”

“Any wager placed in-person (over the counter or on a retail betting kiosk) at Caesars Sportsbooks in Illinois at Grand Victoria Casino Elgin, Harrah’s Joliet, or Harrah’s Metropolis, will not have a tax applied.”

“Any wager placed outside the state of Illinois will not have a tax applied.”

As the email makes clear, Caesars’ decision is a direct response to Illinois’ new tax. At the end of May, lawmakers passed a law that imposes a $0.25 tax on each bet up to the first 20 million bets. After that threshold, the tax increases to $0.50 per bet.

What Have Other Platforms Imposed

Less than two weeks after the passage of the tax, market leader FanDuel became the first operator to respond, by announcing a $0.50 surcharge on each bet.

The operator justified the decision by stating it must protect margins, and it already absorbed the tax increase in 2024, when its tax on gross gaming revenue jumped from 15% to 40%.

Several operators, including DraftKings, have followed FanDuel’s lead, with some placing a minimum bet requirement instead of a surcharge. That includes a $10 minimum imposed by Circa.

Here’s a breakdown of what each operator has rolled out:

• Surcharges: FanDuel, DraftKings ($0.50); Fanatics, Caesars ($0.25)
• Minimum Bets: ESPN Bet, BetRivers ($1); Hard Rock Bet ($2); BetMGM ($2.50); Circa ($10)

With Caesars’ announcement, bet365 remains the only operator not to unveil a strategy.

Some operators, such as FanDuel, DraftKings, Circa, and Caesars, will impose the new requirements on September 1. Meanwhile, others such as BetMGM and Hard Rock Bet have already implemented the change.

Bettors Turn to Offshore Operators

In protesting the new tax, operators have argued it will force many bettors to choose illegal offshore operators. That is also the most common argument by proponents of legalizing sports betting or online casinos in other states.

Early signs suggest they may be right. On forums such as Reddit, many users are considering or have already switched to offshore sportsbooks to avoid higher bet requirements.

Some commenters blame the operators, arguing they generate enough profit not to pass the increase to customers. That’s not universally true, though.

Some, like BetRivers’ parent company Rush Street Interactive, saw record profits in Q2 2025. Still, others, like FanDuel’s parent Flutter, saw a 88% year-over-year decline in net income. In reality, the financial picture varies widely across operators.

Others on Reddit, however, blamed lawmakers for creating the environment that led to the surcharge in the first place. Either way, more Illinois bettors are knowingly moving to unregulated platforms, opting for low bet requirements over consumer protections.