Illinois Doubles Down with Second Sports Betting Tax Hike
Illinois lawmakers, led by Governor J.B. Pritzker, have slapped a new tax on sports betting, this time charging operators for every single wager.
A New Cash Grab per Bet
Starting soon, sportsbooks will pay 25 cents per bet for the first 20 million bets annually, then 50 cents for each bet beyond that. This move, tucked into the state’s $55.2 billion 2026 budget, aims to scoop up an extra $36 million a year to plug a $1 billion budget hole.
But with FanDuel facing an estimated $77 million hit and DraftKings $68 million, based on April 2024 to March 2025 betting data, the industry’s grumbling about getting squeezed dry.
This isn’t Illinois’s first swing at sportsbooks. Just last July, the state rolled out a progressive tax, spiking rates from a flat 15% to 20%–40% based on revenue, with FanDuel and DraftKings hitting the top 40% tier for earnings over $200 million.
That change, signed into law June 1, 2024, jacked up FanDuel’s tax bill from $61.3 million to $144.4 million and DraftKings’ from $46.8 million to $105.7 million.
Now, less than a year later, the new per-bet fee piles on, making Illinois’s tax regime one of the toughest in the U.S., second only to New York’s 51%.
Pritzker’s team insists it’s about fairness, with a spokesman saying, “Gov. Pritzker believes corporations should pay their fair share in Illinois.”
Industry Pushback and Player Impact
Sportsbooks aren’t taking it lying down. The Sports Betting Alliance, representing FanDuel, DraftKings, and others, fired off over 50,000 emails urging bettors to protest.
Operators warn they might hike minimum bets or slap fees on players, though past attempts at surcharges sparked backlash. Analysts say that the effective tax rate increase in Illinois will hurt smaller operators and allow larger companies like DraftKings, FanDuel, and BetMGM to gain market share.
They suggest giants might weather the storm while smaller books like BetMGM ($4 million hit) and Rush Street ($3.25 million) struggle.
The per-bet tax was a last-minute addition, slipped into House Bill 2755 during a frantic 48-hour legislative sprint. Democrats, holding a supermajority, pushed the budget through at 11:53 PM on May 31, 2025, minutes before a midnight deadline that would’ve required a three-fifths majority.
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