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If approved by the legislature, the tax for sports book
operators would go from 15% to 35%, one of the highest
percentages in the country. If enacted, the higher tax would
take effect July 1, the start of the new fiscal year. Pritzker's
office estimates it could generate $200 million in increased tax
revenue.
Dan Holmes with the gambling information website PlayIllinois
said a huge increase in the tax could possibly prompt some
operators to scale back operations.
“There have been situations like in New York where Caesars and
BetMGM both came out and said 'the cost of acquiring customers
is so high, we’re going to reduce our market spend,'” said
Holmes.
New York has a 51% tax on mobile sports betting revenue.
Holmes said big operators like DraftKings and FanDuel should
have no problems with the increased operational taxes, but may
choose to offer less perks to Illinois sports bettors. But there
is speculation that smaller sports books may suffer and close up
shop in Illinois.
Illinois sports bettors wagered about $10 billion in 2023,
placing the state third in the country behind New York and New
Jersey. Operators set a monthly sports betting revenue record in
December at more than $128 million.
The state collected just over $150 million in taxes from sports
betting last year, a $32 million increase from 2022.
The Illinois Department of Human Services is recognizing March
as Problem Gambling Awareness Month. If gambling has become a
problem for you or someone you know, call 1-800-GAMBLER. Help is
also available through the website AreYouReallyWinning.com.
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