With state governments across the US struggling to compensate for cuts in federal funding, they are looking at other ways to generate new revenue.
Lawmakers in Illinois have decided to introduce a new levy on every sports bet in the state. This decision was only made on Saturday, the final day of the current legislative session, so operators were largely blindsided. Governor JB Pritzker is set to sign the $55.2bn budget into law in the coming days.
$0.25 charge is in place for the first 20 million online sports wagers in Illinois
A $0.25 charge is in place for the first 20 million online sports wagers in Illinois, increasing to $0.50 per bet thereafter. The Chicago Tribune estimated that this move will generate about $36m annually.
This isn’t the first time that Illinois lawmakers have targeted the sports betting sector to increase their coffers.
Last year they increased the tax structure to a scaled system, meaning almost every operator contributed more to the state starting in July 2024, with top earners like FanDuel and DraftKings paying 40% on revenue. Other states have since started to follow Illinois’ example.
