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Investing.com -- DraftKings Inc (NASDAQ:DKNG) stock rose 2.6% on Thursday, while Flutter Entertainment PLC (NYSE:FLUT) shares fell 1% after Flutter announced plans to introduce a new transaction fee for its FanDuel customers in Illinois.
The fee comes in response to the Illinois State legislature’s decision to implement a betting transaction fee for licensed operators on all sports wagers placed within the state, effective July 1, 2025. Flutter said FanDuel will charge customers $0.50 per bet placed on its platform in Illinois starting September 1, 2025.
Flutter CEO Peter Jackson expressed disappointment with the Illinois Transaction (JO:NTUJ) Fee, stating it will "disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state."
The company noted that the new state fee follows a substantial increase in Illinois’ betting tax rate in 2024, which FanDuel had previously absorbed without passing costs to customers. Flutter warned that the transaction fee might drive some Illinois bettors to unregulated operators that don’t collect the fee or contribute tax revenue.
FanDuel committed to removing its transaction fee immediately if the state reverses its decision. The divergent stock movements suggest investors may view the Illinois situation as potentially beneficial for DraftKings relative to market leader FanDuel in the competitive Illinois sports betting market.
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