The per-bet tax put in on betting firms in Illinois is exhibiting indicators of actual influence on the betting market.
The Illinois Gaming Board has launched statistics exhibiting that wagering decreased by 15% in September in comparison with the earlier month, and $10.6 million was recouped by way of taxation.
The tax originates from the $55.2 billion price range accepted and signed by Governor J.B. Pritzker in mid-2025, which included $480 million in general tax increases to fund statewide funding.
Tax will increase hit massive gamers laborious
Based on the Illinois Gaming Board’s Sports activities Wagering Monthly Reports, there’s a marked lower in wagering. This may very well be attributed to thousands and thousands of bets now topic to the tax improve, which may very well be dissuading bettors throughout the state.
FanDuel and DraftKings, two of the largest operators within the state, felt the taxation pinch by way of partnerships with Fairmount Park, Inc., and On line casino Queen, Inc., respectively.
FanDuel reported that throughout 11 million wagers, there was a $4.5 million tax invoice, and DraftKings had an identical receipt for the 11.25 million wagers positioned for $4 million in taxes.
Earlier than the invoice was signed into regulation, we reported that Jason Robins, the CEO of DraftKings, publicly criticized the bill, saying that, regardless of assembly with state leaders, the proposed price range didn’t embrace the tax hike.
“All it’s (the now accepted tax laws) going to do is drive individuals to the unlawful market or drive individuals to guess extra. It simply is senseless, and it was finished at midnight. We had no warning, really met with legislative leaders within the weeks earlier than the price range was launched, and so they made no point out of this,” mentioned Robins in July 2025.
The Sports activities Betting Alliance (SBA), which represents the lobbying pursuits of each operators, was vocal concerning the influence of taxation,
“It (the reporting) exhibits that bets plunged in Illinois after the regulation was put in place and is a crimson flag that Illinois sports activities followers are fleeing the authorized betting market in favor of the cheaper, unlawful market,” Illinois spokesperson Maura Possley informed The Centre Square.
Extra taxes incoming for Illinois?
Chicago Mayor Brandon Johnson’s proposal for a further 10.25% metropolis playing tax would additionally imply that, come January 1, 2026, main operators like FanDuel and DraftKings may very well be paying 51% in taxes to function in Chicago and Illinois.
An excerpt from the price range proposal states that the tax is “a ten.25% charge on adjusted gaming receipts from on-line sports activities betting licensees—an business that has grown quickly, with over $48 billion wagered nationwide prior to now 5 years. The measure ensures this increasing sector contributes to the Metropolis’s shared priorities.”
The unlawful betting market was a priority, mentioned Possley, who cited that federally appointed people agreed that the tax increase could lead on extra bettors to show to illicit websites.
“You see settlement amongst the entire attorneys common throughout the nation that the unlawful market is a severe concern. It’s quickly increasing with none shopper protections and 0 oversight,” Possley mentioned.
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