Illinois has approved a major tax hike for sports betting operators as the state seeks to increase tax revenues for public spending which is expected to exceed $53.1 billion in the next fiscal year.
According to reports, members of the Illinois General Assembly have returned Gov. J.B. Pritzker’s record $52.7 billion budget proposal with an additional $400 million in expenditure.
Illinois Sport Betting Tax Rate Increase on the WaySports Betting Tax Increase
Illinois Sport Betting Tax Rate Increase on the Way Illinois Sport Betting Tax Rate Increase on the Way, an unrelated bill.The rates are as follows:
- 20% – Annual AGR up to $30 million
- 25% – Annual AGR $30 million to $50 million
- 30% – Annual AGR $50 million to $100 million
- 35% – Annual AGR $100 million to $200 million
- 40% – Annual AGR over $200 million
The increased tax rates are expected to generate an additional $200 million in revenues for the state.
Illinois Sport Betting Tax Rate Increase on the WayWhen the tax rate increase was originally proposed, Illinois sports betting operators suggested that the increase would result in poorer odds for sports bettors. However, this has not been the case in states with higher rates such as New York, New Hampshire, and Rhode Island.
Stocks in sports-betting companies like DraftKings (DKNG) and FanDuel’s parent Flutter Entertainment (FLUT) slid on Tuesday following passage of the new state budget.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.