Illinois sports wagers decline after implementation of new tax
[November 17, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – The Illinois Gaming Board has reported a 15% drop
in September sports betting, after the state imposed a new tax on
wagers.
Sports Betting Alliance of Illinois spokesperson Maura Possley said five
million fewer bets were placed in Illinois this September compared to
September 2024.
“It shows that bets plunged in Illinois after the law was put in place
and is a red flag that Illinois sports fans are fleeing the legal
betting market in favor of the cheaper, illegal market,” Possley told
The Center Square.
The $55.2 billion budget passed by the General Assembly last spring and
signed by Gov. J.B. Pritzker in June included the tax as part of more
than $480 million in tax increases to pay for increased state spending.
Illinois imposes a 25-cent “privilege” tax on wagering licensees for
each mobile or online bet up to 20,000,000 bets and 50 cents on each bet
after that. The operators can then pass the cost on to bettors.
Possley said September was the first full month of betting activity
since the tax was implemented. Although September is normally busy with
the start of pro football season, college football and baseball’s
pennant races, Possley said Illinois’ decline is a warning sign.
“Overtaxing legal betting will send bettors either outside state lines,
city lines, or to the predatory illegal market and have profound
negative implications for the legal market and also future tax revenues
here,” Possley said.
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Possley said the data from Illinois is a dramatic departure from
trends in other states, adding that earnings reports from betting
companies show that sports betting is increasing nationally.
According to Possley, Illinois’ per-wager tax is one of the highest
in the country and may be driving bettors out of the legal market.
Illinois Attorney General Kwame Raoul and his counterparts in other
states asked the U.S. Department of Justice to take action against
illegal online gaming.
“You see agreement among all of the attorneys general across the
country that the illegal market is a serious concern. It’s rapidly
expanding without any consumer protections and zero oversight,”
Possley said.
Chicago Mayor Brandon Johnson has proposed an additional city tax on
betting as part of his 2026 budget plan.
Possley said an additional betting tax as proposed by Johnson would
be “unprecedented” and would drive more people to the illegal
market.
She said the decline of legal sports betting in Illinois should be a
concern to policy makers in Chicago.
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