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Next month, voters in Missouri will decide whether to legalize
sports betting. DraftKings recently contributed another $5
million in efforts to legalize online sports betting in
Missouri.
Pritzker included a hefty tax hike for sports betting companies
in his latest Illinois budget, and some were worried that the
companies would pack up and leave. Pritzker said that didn’t
happen when the Hoosier State allowed sports betting.
“There is betting in Indiana, so that hasn’t happened,” said
Pritzker. “Companies are not getting up and leaving as a result
of a change in the tax code.”
Next year, Illinois’ new progressive tax rate will start at 20%
for the lowest-earning sportsbooks and climb to as much as 40%
based on monthly profits for the biggest earners.
Last July, DraftKings announced that it would add surcharges to
high-tax states like Illinois. Illinois and three other states
were singled out in the initial announcement by DraftKings, but
following backlash, the company decided not to follow through
with the extra charges.
“We always listen to our customers and after hearing their
feedback we have decided not to move forward with the gaming tax
surcharge. We are always committed to delivering the best value
in the industry to our loyal customers,” the company said in a
statement.
PlayIllinois.com Managing Editor Tyler Andrews said this is
probably not the end of the surcharge talk.
“I wouldn’t say that bettors have won at this point, but what I
would say is when you impose these really high tax burdens on
operators, it is going to come back to the customers
eventually,” said Andrews.
According to the Illinois Gaming Board, Illinois is the second
ranked sports betting market behind New York. |
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