Illinois Lawmakers have greenlit a new individual wagers tax for online sportsbooks within the state. This tax will be part of the fiscal budget, and will be signed into law by Governor J.B. Pritzker. Democrats in the House introduced and quickly approved the amendment. Meanwhile, Pritzker praised the budget online and plans to sign it into law.
As part of the annual budget, Illinois lawmakers approved a new per-wager tax on online sportsbooks this weekend. This follows last year’s sharp tax hike on sports betting revenue, raising rates up to 40% for some operators.
Starting July 1, sportsbooks will pay 25 cents per wager for the first 20 million annual bets. After that threshold, the tax increases to 50 cents per bet for the remainder of the year.
Reaction to Illinois Lawmakers Adding Taxes to Online Sportsbooks
Unsurprisingly, major online sportsbook operators within the state were in an uproar, greatly opposing the latest change. On Saturday, the Sports Betting Alliance (SBA) launched an email and social media campaign opposing the proposed tax change.
The SBA includes major operators like FanDuel, DraftKings, BetMGM, and Fanatics. By 10 p.m. on May 31, just before the vote, Illinois residents had sent 55,000 emails to lawmakers. They also recruited the help of FanDuel ambassador Rob Gronkowski to gain signatures and support.
The Responsible Online Gambling Association (ROGA), which includes SBA members and other operators, voiced opposition to the plan on social media. ROGA stated that Illinois’ per-wager tax could harm responsible gaming and push players toward riskier or unregulated options.
Despite the opposition, lawmakers passed the fiscal year budget before the May 31 midnight deadline. The SBA responded by calling the new tax “crippling” in a public statement. The coalition stressed the following:
“With this change, lawmakers are essentially urging customers – and especially these small-dollar bettors – to switch to unsafe and unregulated sportsbooks who defy state consumer protections and generate zero taxes for state priorities.”