DraftKings operates legally in Illinois as a licensed sportsbook and a daily fantasy sports platform, both regulated under the Illinois Sports Wagering Act.1Illinois General Assembly. 230 ILCS 45 – Sports Wagering Act If you’re physically located in the state and meet the age requirement, you can sign up, deposit, place wagers, and withdraw winnings through the app or website. What you can’t do on DraftKings in Illinois is play online casino games. No slots, no blackjack, no roulette. State law doesn’t authorize online casino gambling, so those products don’t exist on the platform here.
What You Can and Can’t Bet On
The Illinois Gaming Board publishes the list of approved and prohibited sporting events that DraftKings and every other operator has to follow.2Illinois Gaming Board. Frequently Asked Questions A few categories are off-limits regardless of the market or bet type:
- Any sporting event involving an Illinois college team. A temporary carve-out that allowed certain in-person wagers on Illinois college games expired on July 1, 2024, so no form of DraftKings betting on those teams is currently available.
- Any minor league game.
- Any K-12 school athletic event.1Illinois General Assembly. 230 ILCS 45 – Sports Wagering Act
Everything else on the standard DraftKings menu — professional leagues, out-of-state college games, international events — is fair game if it appears on the IGB-approved list.
Who Can Use It
The minimum age depends on the product. Sports betting requires you to be at least 21. Daily fantasy sports contests are open at 18. DraftKings verifies both during account setup.
You also have to be physically inside Illinois whenever you place a sportsbook wager. This applies to residents and visitors alike. Location is checked in real time on every bet attempt using GPS and other signals, so you can’t wager from across the border in Indiana or Wisconsin even with an Illinois-registered account. The Sports Wagering Act requires this verification, and the Illinois Gaming Board can require operators to hand over real-time location data at the individual account level.1Illinois General Assembly. 230 ILCS 45 – Sports Wagering Act If you’re near a state line, you may occasionally get flagged even when you’re technically in Illinois; moving further inland or connecting to Wi-Fi usually clears it.
Some people are barred entirely because of their profession. The Sports Wagering Act defines a broad category of “covered persons” that includes athletes, referees, coaches, athletic trainers, medical professionals who treat players, team and league staff, and even family members and close associates of those individuals.1Illinois General Assembly. 230 ILCS 45 – Sports Wagering Act If any of that describes you, placing a wager can carry serious legal consequences.
Signing Up
You can download DraftKings from the Apple App Store or Google Play, or use the website directly. Registration asks for your full legal name, current home address (no P.O. boxes), date of birth, email, phone number, and Social Security number. DraftKings initially requests only the last four digits of your SSN for identity checks. If you hit a taxable winnings threshold later, they’ll ask for the full nine digits for IRS reporting.3DraftKings. Creating a DK Horse Account – Overview
Every field needs to match your government ID exactly. Small mismatches can send your account into manual review. If the automated identity check can’t verify you, DraftKings will ask for a photo of a driver’s license, passport, or other government ID, and sometimes a utility bill to confirm your address.4DraftKings. How Do I Create an Account? (US) Until verification clears, you can’t wager or withdraw, so responding to any document request quickly saves headaches later.
Getting Money In and Out
Deposits go through debit cards, online banking, PayPal, Venmo, Apple Pay, DraftKings gift cards, bank wires (typically a $100 minimum), and cash at participating retail locations (subject to a $500 daily and $10,000 monthly limit).5DraftKings. Depositing on DraftKings – Overview (US) Cryptocurrency is available for sports betting where offered.
Withdrawals run through PayPal, Venmo, online banking, debit card, bank wire, check, or Apple Pay. PayPal and Venmo usually clear within 24 hours; debit card withdrawals take three to five business days; checks are the slowest.6DraftKings. Withdrawing from DraftKings – Overview (US) Your identity verification typically needs to be fully complete before a first withdrawal will process.
Taxes on Your Winnings
This is where a lot of Illinois bettors get caught off guard. Gambling winnings are taxed at both the federal and state level, and Illinois is stricter than the federal rules in one important way.
Federal Reporting
For sports wagering, DraftKings issues a Form W-2G when winnings reach at least $2,000 and the payout is at least 300 times your wager.7Internal Revenue Service. Instructions for Forms W-2G and 5754 (Rev. January 2026) The $2,000 threshold applies starting in calendar year 2026. Even if no W-2G is issued, the IRS still expects you to report all gambling income on your federal return.
For daily fantasy sports, you’ll get a Form 1099-MISC when your net annual profit exceeds $2,000, calculated as cash winnings minus cash entry fees plus any cash bonuses. That threshold was set by the One Big Beautiful Bill Act, signed July 4, 2025, and applies from tax year 2026 forward. DraftKings tracks DFS and sportsbook winnings separately, so you may receive both forms in the same year.
The Illinois Rule That Hurts
Illinois applies its flat 4.95% individual income tax rate to gambling winnings.8Illinois Department of Revenue. Income Tax Rates Unlike federal law, Illinois does not let you deduct gambling losses against your winnings on the state return. Federal law allows you to deduct losses up to the amount of winnings if you itemize; Illinois ignores that deduction entirely.
The practical effect is severe for anyone who bets regularly. If you win $10,000 and lose $10,000 in the same year, you had zero actual profit but still owe Illinois $495. Track your wins and losses carefully throughout the year so this bill doesn’t blindside you at filing time.
Self-Exclusion
If you decide sports betting is a problem, Illinois runs a free, voluntary self-exclusion program through the Gaming Board that permanently blocks you from sports wagering and casino gambling with every licensed operator in the state, DraftKings included. Enrollment is done in person at an IGB office (including offices at Illinois casinos), takes about 30 to 45 minutes, and requires a valid driver’s license or state-issued ID.9Illinois Gaming Board. Self-Exclusion Program (SEP) Worth knowing about before you sign up, not just after problems develop.