Skip to playerSkip to main contentSkip to footer
  • yesterday
Transcript
00:00Okay, let's get to Illinois. Okay, so FanDuel, DraftKings taking their quarter 50 cents based on Illinois taking more money in taxes. We thought maybe this would get resolved before July 1 and cooler heads would prevail, but they are pushing forward. I know another company, I believe Fanatics is involved now taking their little cut too. And so those fees officially go into effect yesterday, correct?
00:23Correct. Yeah, yesterday marked the end of Illinois's legislative session, which is the session that they added this new per bet fee on sportsbooks. So 25 cents on the first $20 million worth of wagers that you take as a sportsbook, and then 50 cents on every bet after that.
00:44There was only two sportsbooks that met that threshold last year, DraftKings and FanDuel. They came out with this, you know, with this news that they're going to pass this 50 cent fee directly onto the customers, saying that they weren't going to take any of the tax and they wanted it to be absorbed.
00:59They did that as a kind of threatening mechanism. They said, as well, you know, if Illinois gets rid of this, this sudden change before the legislature is over, we'll get rid of it. Obviously, the legislative session is over now. They didn't get rid of it. The new per bet fee will go into effect in September. And already we've seen other sportsbooks, like you mentioned, Fanatics say, oh, we're going to do the same thing. You know, Fanatics wouldn't be subject to this new fee.
01:23But it's not surprising that, you know, they're kind of thinking, you know, if maybe other people can get away with it, so can we under just kind of the guise that, you know, it does apply to every sportsbook, but I don't think Fanatics will reach that 20 million thresholds.
01:36So for me, this would be a really interesting case study to see if sportsbooks can simply just charge more and get away with it and people will be fine. I have to think they are. Most people don't price shop. So it'll be really interesting to see what happens in Illinois when this goes into effect.
01:48You know, if people do in fact go to the offshore illegal market like has been threatened, or if they're simply fine with just staying with their favorite apps and paying more.

Recommended