08:18 AM EDT, 06/10/2025 (MT Newswires) -- Flutter Entertainment ( FLUT ) said Tuesday that it will charge a $0.50 transaction fee on FanDuel bets in Illinois starting Sept. 1, in response to the state's recent decision to impose a betting transaction fee for licensed operators on all sports wagers placed from July 1.

The online betting and iGaming operator said the company's new fee reflects increased operational costs as a result of the most recent Illinois Transaction Fee, which follows a betting tax rate hike last year that FanDuel initially absorbed without passing costs to customers.

Flutter quoted its CEO Peter Jackson as saying the Illinois Transaction Fee disproportionately affects recreational bettors while penalizing operators who have invested in Illinois' regulated market.

Jackson warned that the fee could drive customers toward unregulated operators who lack state oversight, do not pay taxes, and avoid the transaction fee, the company said.

FanDuel also said it would remove the $0.50 fee if Illinois reverses its decision in the future.