In a last-minute move that’s riling major players in the sports betting world, Illinois lawmakers have approved a per-wager tax on all online sports bets. The new policy, pushed through on the final day of May as part of the state’s fiscal 2025 budget, is set to take effect on July 1, pending a formal signature from Governor J.B. Pritzker, which he has already promised. 3j2e
Under the new framework, sportsbooks will now be taxed 25 cents per wager on the first 20 million online bets placed each year. After that, each additional bet will be taxed at 50 cents apiece. The new fee is layered on top of Illinois’ already steep progressive tax structure on sportsbook gross gaming revenue (GGR), making the state one of the most expensive markets in the country for operators like FanDuel and DraftKings.
A New Hit for Operators: Millions in Added Costs 591s6z
The cost implications are significant. Analysts at Citizens JMP estimate the added wager fee will cut into FanDuel and DraftKings’ adjusted EBITDA by a combined $80 million in 2026. These two giants are the only operators currently exceeding the 20 million wager threshold that triggers the higher 50-cent rate.
This comes just one year after Illinois implemented its progressive tax model, which taxes the highest-earning operators’ GGR at rates of up to 40%. Between that and the new per-wager fees, Illinois is sending a clear message: if you’re making serious money off Illinois bettors, you’ll pay for it.
According to reporting by the Chicago Tribune, the state projects the per-wager tax will generate around $36 million annually in additional revenue.
Sportsbooks and Industry Groups Fight Back 29131
Predictably, the sports betting industry is not pleased. The Sports Betting Alliance (SBA) — a trade group representing FanDuel, DraftKings, Fanatics — led a campaign to push back against the proposal as soon as it surfaced.
Their tactics included email and social media blitzes targeted at Illinois residents, urging them to lawmakers. By 10 p.m. on May 31, just two hours before the bill ed, the SBA claimed more than 55,000 emails had been sent to legislators in opposition.
The group even enlisted Rob Gronkowski, former NFL star and current FanDuel ambassador, to rally on social media. The message: this tax could hurt consumers as much as operators.
In a strongly worded statement after the bill’s age, the SBA called the tax “crippling” and warned it could push bettors toward unregulated offshore sportsbooks, which don’t pay taxes and aren’t subject to consumer protections.
“Lawmakers are essentially urging customers — and especially these small-dollar bettors — to switch to unsafe and unregulated sportsbooks who defy state consumer protections,” the SBA said.
Responsible Gaming Advocates Also Push Back 3p1v3m
Opposition isn’t just coming from the sportsbooks themselves. The Responsible Online Gaming Association (ROGA), a group that includes the SBA’s four plus PENN Entertainment, bet365, Hard Rock Digital, and Bally’s, also slammed the proposal.
Their main concern: the tax might encourage players to place fewer but larger wagers, which could work against responsible gambling principles.
“Illinois’ proposal to impose a tax on every sports wager would undermine responsible gaming,” ROGA said. “It risks incentivizing players to make larger wagers, or turn to unregulated operators that lack adequate RG protections.”
Despite the industry outcry, the budget ed before the midnight May 31 deadline, effectively locking in the new per-bet tax.
Illinois Eyes Revenue, Ignores iGaming Potential 294zp
While sportsbook operators argue that the tax could destabilize the regulated market, state lawmakers appear focused on short-term revenue gains. The additional $36 million from the per-wager fee is just a piece of a broader fiscal package, but its age without major debate or delay signals where priorities lie.
Interestingly, the SBA and ROGA also pointed out a missed opportunity: regulated iGaming.
The SBA says a legal, taxed online casino market in Illinois could generate $1 billion in new revenue, dwarfing the returns expected from the per-bet tax. However, lawmakers opted not to pursue that avenue — at least not in this legislative session.
“It’s extremely disappointing that the legislature chose to this tax and disregard the $1 billion in new revenue that a regulated and consumer-protected iGaming market would provide,” the SBA added.
What’s Next for Bettors and Operators in Illinois 4uj48
For sports bettors in Illinois, the change won’t directly affect the size of their bets—yet. The tax applies to operators, not players. However, it’s reasonable to expect that over time, books might adjust odds, reduce promotions, or on costs in other ways to offset the new burden.
For operators, especially smaller ones trying to compete with FanDuel and DraftKings, the challenge is now even steeper. High operational costs, layered taxes, and competitive pressure could make Illinois a less attractive market for future entrants.
And for lawmakers, the gamble is this: Will these aggressive taxes deliver stable revenue, or will they eventually choke off the regulated market they’re trying to milk?
Only time — and betting slips — will tell.
