A brand new invoice in Illinois goals to repeal the state’s controversial per-wager tax on on-line sports activities betting. House Bill 5143, launched by Rep. Daniel Didech, seeks to finish the tax on particular person on-line sports activities wagers positioned by licensed operators, efficient July 1, 2026. The invoice follows rising considerations from sportsbooks and operators in regards to the impression of the tax on each their enterprise operations and the state’s authorized sports activities betting market.
Repealing the Per-Wager Tax
Illinois lawmakers initially applied the per-wager tax in July 2025 as a part of a broader effort to enhance state income. Under the present system, sportsbooks are charged 25 cents per wager for the primary 20 million bets positioned yearly, with the speed rising to 50 cents for wagers past that threshold. The tax is separate from the state’s graduated tax system, which fees operators a proportion of their income, starting from 20% up to 40%, relying on the quantity earned.
The per-wager tax was anticipated to generate a further $36 million yearly for the state. However, in accordance to information from the Illinois Gaming Board, the tax led to a noticeable decline in sports activities betting exercise, significantly within the months following its implementation. A report launched in November 2025 confirmed a 15% lower within the variety of bets positioned within the state in contrast to the earlier yr. This drop in betting exercise was attributed to the per-wager cost by the Sports Betting Alliance (SBA), which represents main operators like FanDuel, DraftKings, and BetMGM.
While the Illinois Gaming Board reported a drop within the variety of bets, the state’s total sports activities betting deal with continued to develop, suggesting that the decline was tied to the extra prices imposed by the per-wager tax. Sportsbooks have responded by rising surcharges or elevating minimal wager stakes to offset the tax, passing the associated fee onto prospects. This adjustment has contributed to frustrations amongst each bettors and operators.
The introduction of the per-wager tax is a part of a broader development of accelerating tax burdens on sportsbooks in Illinois. In addition to the per-wager charge, Illinois has one of many highest tax charges for on-line sports activities betting operators within the U.S. As of July 2024, the state applied a graduated tax on operators’ adjusted gross income (AGR), beginning at 20% for income up to $30 million and escalating to 40% for income above $200 million.
On high of the state taxes, Chicago imposes a ten.25% tax fee on on-line sports activities bets positioned inside the metropolis limits, whereas Cook County provides a further 2% tax. This cumulative taxation makes Illinois probably the most costly states for sportsbooks to function in, main to requires tax reduction from the trade.
According to WCIA.com, Rep. Didech’s HB 5143 goals to alleviate a few of this burden by eliminating the per-wager tax, which might give operators extra flexibility and assist encourage extra bettors to have interaction with authorized sportsbooks. However, this effort faces resistance from lawmakers who argue that the tax is an important income for the state.
The Competing Forces Behind HB 5143
The debate over Illinois’ sports activities betting taxes shouldn’t be restricted to the state legislature. There has been vital pushback from sportsbooks and trade associations, who argue that the tax burden harms their capability to compete with unlawful betting platforms. According to the SBA, the discount in bets positioned on authorized sportsbooks is a direct results of the per-wager tax, which has pushed prospects to black-market websites and unlawful bookies. This, in flip, undermines the state’s objective of making a authorized and controlled sports activities betting market.
While the state has skilled total progress in its sports activities betting deal with, the decline in bets positioned inside Illinois means that bettors could also be choosing extra inexpensive or accessible options. This state of affairs mirrors nationwide tendencies, the place unlawful betting continues to siphon income from regulated markets.
Illinois continues to be a serious participant within the U.S. sports activities betting panorama, rating second behind New York in whole sports activities betting deal with for 2025. Despite the latest drop within the variety of bets positioned, the state’s authorized sports activities betting market stays sturdy. The state’s sports activities betting trade has grown quickly since legalization, significantly in areas like Rockford, the place cellular sports activities wagering has flourished.
However, the state’s excessive taxes and charges stay a problem for operators. The passage of HB 5143 might sign a shift in Illinois’ method to sports activities betting regulation, making it extra aggressive with different states. By eliminating the per-wager tax, Illinois would create a extra favorable surroundings for authorized sportsbooks, doubtlessly drawing extra gamers to licensed platforms and curbing unlawful betting actions.
