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Illinois Increases Tax On Sports Betting To 40% Despite Strong Opposition From The Sports Betting Alliance

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Illinois has officially updated its sports betting tax rate, with Governor J.B. Pritzker signing the tax into law despite strong opposition from the Sports Betting Alliance (SBA).

Illinois Hiking Sports Betting Tax Rate To 40%

The new tax law will be officially put into place on the 1st of July, with sportsbook operators taxed between 20-40% depending on their adjusted gross revenue.

Sportsbooks with over $200million in gross revenue will be taxed at the 40% mark, while those with revenue below that mark will be taxed accordingly on a sliding scale with a minimum of 20%.

Illinois’ tax rate increasing from 15% to up to 40% is one of the largest jumps in sports betting tax history – with only New York taxing more at a rate of 51%.

Speaking after signing the new tax into law, Governor J.B. Pritzker said:  “They’re [sports betting tax] not leaving New York, and they’re not leaving the other states.

“You see we’re the third-largest sports betting market for sports betting companies, and we had a much lower tax rate than many of the largest of those markets.

“Companies that can pay more pay more. And, indeed, we kept the tax on sportsbooks lower than the top states in that arena.”

A new tax rate caused outrage with some, with the Sports Betting Alliance (SBA) in strong opposition to the new tax rate before its approval.

The SBA is made up of the nation’s leading sportsbook operators, including the likes of FanDuel, DraftKings, BetMGM and Fanatics, so it was no surprise they came with strong opposition to the tax hike.

Despite the SBA saying that the tax hike is an “extremely disappointing decision that will cause real harm,” the law has been passed and there is nothing the operators can do to contest it now.

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Olly Taliku has worked with highly respected sports and gambling websites where he has produced hundreds of articles, as well as being published with Burton Albion and Chesterfield FC. At Burton Olly worked closely alongside the women's team, producing mainly matchday content including reports and interviews, while at Chesterfield he worked in a similar role but with the academy side, as well as some first team content. He also has experience as an accredited Premier League and EFL writer for Prost International where he worked during the 2021/22 season to produce matchday content as an on location reporter. Olly specialises in football as well as long form SEO content plus news, tips and betting but also produces content on basketball, baseball and American football.