Illinois Senate

  • Illinois is only two steps away from implementing a progressive sports betting tax that reaches up to 40%.
  • The Illinois Senate amended House Bill 4951, including a progressive sports betting tax starting at 20% and reaching up to 40% based on operator revenue earnings.
  • Illinois currently has a 15% sports betting tax rate, but Governor J.B. Prtizker proposed an increase to 35%.

CHICAGO – A neighborhood concert tax in Illinois has been amended to include a progressive sports betting tax rate. The Illinois Senate approved of the legal sports betting tax hike on Sunday, which would see top-earning sportsbooks in the state potentially go from a 15% tax rate to a 40% tax rate.

Illinois’ proposed progressive tax rate starts at 20% for a sportsbook with $30 million or less in adjusted gross revenue (AGR). Some Illinois sports betting operators, like FanDuel and DraftKings, would trigger the 40% maximum tax rate for surpassing $200 million in AGR.

AGR Illinois Tax Rate
<$30 Million 20%
<$50 Million 25%
$50 Million-$100 Million 30%
$100 Million-$200 Million 35%
>$200 Million 40%

Sports Betting Alliance Against Progressive Tax Bill

The Sports Betting Alliance, a coalition of legal sports betting operators, expressed their disapproval of the bill on their X account. They’re looking for customers to sign a petition against the bill and email their legislator.

“We need your help to save the future of legal sports betting in Illinois. Right now, legislators are considering an unfair tax hike that would drive businesses out, revenue down, and destroy your options.

Tell your legislator that ruining your legal sports betting experience is not why you sent them to Springfield.”

Illinois Governor J.B. Pritzker proposed an Illinois sports betting tax increase to 35% earlier this year. With the progressive tax rate reaching 40%, Illinois would have the second-highest sports betting tax rate in the country behind New York at 51%.

Illinois would also join Arkansas as the only legal sports betting states with a progressive tax rate. Arkansas sportsbooks pay a 13% tax until they exceed $150 million in total gaming revenue, then the rate increases to just 20%.

The Illinois progressive tax rate applies to both mobile and retail sports betting revenue, although it mostly impacts online sportsbooks in the state. If approved by the House and signed by Gov. Pritzker, the progressive tax system would begin on July 1 of fiscal year 2025.

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