Illinois’ licensed sports betting operators will see their tax rate more than double this year as the state looks to raise an additional $200 million.
The tax increase in the FY2025 budget will raise the sports betting tax to 35 per cent of adjusted gross revenue, up from the current 15 per cent tax that has been in place since the regulated market opened in March 2020.
Players in Illinois wagered $11.62 billion on sports in the 2023 calendar year, of which $11.27 million was wagered online, giving the state $150.3 million in sports betting tax revenue.
The new rate will come into force in July and is expected to deliver an approximate $200 million boost to the state in FY2025.
The first 15 points of the tax will continue to be transferred into the Capital Projects Fund to help pay debt service, with the additional 20 points being transferred into the General Revenue Fund.
Illinois Governor J. B. Pritzker said the tax increase will bring his state closer to its peers in terms of betting tax structure.