Illinois Sports activities Bets Plunge by 5M as Operators Reply to Greater Taxes
- Commerce group backing sportsbooks says per-bet charges are resulting in fewer wagers
- Deal with didn’t lower; it rose yr over yr
- Operators imposed per-bet charges and minimums in response to tax enhance
The Sports activities Betting Alliance (SBA) of Illinois, a commerce affiliation supporting sportsbook operators within the state, mentioned Thursday bettors there positioned 5 million fewer bets in September than they did a yr earlier in response to per-wager charges and minimums carried out by gaming corporations.
A commerce group says sports activities betting taxes in Illinois are resulting in fewer wagers. (Picture: OZinOH/Flickr.com)
September was the primary full month during which bettors within the Midwest state have been topic to the transaction prices and minimal wager necessities enacted by operators in response to the state’s newest sports activities betting tax enhance — 25 cents per wager on the primary 20 million bets booked, with that determine doubling to 50 cents for each wager after 20 million.
When in comparison with September 2024, the September 2025 information reveals that 5 million fewer bets have been positioned in Illinois — or a 15% lower,” mentioned the Sports activities Betting Alliance of Illinois, citing information from the Illinois Gaming Board (IGB).
Many of the operators within the state opted for minimal wager sizes, in all instances small, however DraftKings, Fanatics, and FanDuel cost Illinois bettors on a per-bet foundation.
Illinois Sports activities Betting Tax Not Affecting Deal with
The SBA beforehand decried the Illinois tax enhance, saying it’s a recipe to chase bettors offshore, that means the state would generate much less income. Whereas it’s true the full variety of bets positioned declined in Illinois in September, what didn’t fall was deal with, or the full greenback quantity of sports activities bets.
IGB information point out September tier one and tier two on-line sports activities betting deal with checked in at $434.5 million and $782.3 million, respectively. In September 2024, these figures have been $416.8 million and $676.7 million.
Nonetheless, the SBA is appropriate about a minimum of one factor: the graduated tax enhance carried out by Illinois in 2024, adopted by this yr’s per-bet levy, has pushed the state’s on-line sports activities wagering taxes to among the many highest within the nation.
“Coupled with Illinois’ 2024 graduated tax, the state’s per-wager tax has made the taxes paid by authorized sports activities betting prospects right here one of many highest within the nation whereas the unregulated, unlawful market is quickly increasing – with none client protections and with none oversight,” mentioned the commerce affiliation.
Money-strapped Chicago is considering a city-specific sports activities betting tax to bolster income, however there’s some sense lawmakers in Springfield aren’t on board with that plan.
The place Prediction Markets Match In
Maybe surprisingly, given the hoopla surrounding sports activities occasion contracts, the SBA of Illinois didn’t point out prediction markets in its assertion, and it’s not clear if the five-million-bet attrition in Illinois talked about by the group was prompted by the occasion contract platforms.
Nevertheless, there may be discuss in business circles that, with DraftKings and FanDuel getting ready to supply sports activities occasion contracts in states the place sports activities wagering isn’t permitted, they may very well be messaging to high-tax states like Illinois to both play ball on extra accommodative tax buildings or come to the bargaining desk on iGaming.
For now, nevertheless, that’s simply hypothesis.
