Fantasy Sports Tax Proposal in Illinois
According to Senate Bill 2145, fantasy sports operators would face a tiered tax structure based on adjusted gross receipts with some operators paying 40% tax:
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Fantasy Sports Could Soon Face 40% Tax in Illinois
- 25% on receipts between $1 million and $3 million
- 30% on receipts between $3 million and $5 million
- 35% on receipts between $5 million and $10 million
- 40% on receipts over $10 million
Operators would also need to pay a $50,000 licensing fee to continue operating in Illinois.
Fantasy Sport Operators Say Illinois’ Proposed Bill is Excessive
Tim Jensen of Real Time Fantasy Sports told lawmakers that the licensing fee alone exceeds their total revenue from Illinois. Bartlett Cleland of NetChoice argued that fantasy sports platforms earn about 1/30th of what sportsbooks do, and taxing them at the same level would be disproportionate.
State Senator Cristina Castro said companies profiting from Illinois users should expect to contribute. “You want the privilege to do business in Illinois, guess what, you’re going to pay for that privilege,” she said.
New Licensing Model for Sportsbooks in Illinois Also in New Bill
SB 2145 also proposes a new licensing model for online-only sports betting:
- $250,000 application fee
- $15 million for the initial license (valid for four years)
- $1 million for a four-year renewal
The licenses would be issued by the Illinois Gaming Board and allow operators to enter the market without a physical presence.
What Happens Next?
SB 2145 is still under legislative review. If it passes, it would give the Illinois Gaming Board full authority to regulate fantasy sports and significantly increase the cost of doing business in the state.
Fantasy Sports Could Soon Face 40% Tax in IllinoisIf you play fantasy sports or bet online in Illinois, this legislation could change who’s allowed to operate in the state—and how much they’ll have to pay to stay.
Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.
