An sports betting tax rate as an alternative to Gov. JB Pritzker’s proposed increase to 35% for the fiscal year beginning July 1.
The minimum tax rate as part of HB 4951 is 20%, an increase from the current 15% rate at all levels of operator adjusted gross revenue. The threshold increases to 25% at $30 million in adjusted gross revenue; 30% over $50 million; 35% over $100 million; and 40% over $200 million.
Of the eight DraftKings ($350 million) would reach that maximum 40% threshold based on their last 12 months of winnings.
ESPN BET likely would reach that benchmark as well in a full 12-month span.
Pritzker originally called for a 35% tax rate on operator sports betting winnings in February as part of his $52.7 billion budget unveiled in February, with the increase estimated to provide an additional $200 million in tax revenue.
Sports betting in Illinois generated $1.03 billion in AGR in the 2023 calendar year, resulting in $151.4 million in state taxes.
