Illinois’ New Betting Tax Results in Decline in Sports Bets
Illinois Implements a New Tax on Sports Betting
Recent developments show that Illinois’ newly introduced betting tax is having a negative impact on the sports betting sector, confirming earlier concerns raised by industry experts. Data indicates a steady drop in betting activity since the tax came into effect, alongside measures by operators to offset added expenses.
Details of the Betting Tax and Its Effects
According to data from the Illinois Gaming Board analyzed by local news, there has been a notable decrease in sports wagers placed within the state. This downturn coincides directly with the state’s introduction of revised tax regulations on sports betting. The law imposes a $0.25 tax on the first 20 million bets processed by sportsbooks, increasing to $0.50 for each bet thereafter. This policy, met with controversy and resistance from many in the industry, ultimately became law.
Critics argue that the tax disproportionately burdens larger operators managing a high volume of bets, potentially pushing them to introduce extra charges for their customers to stay profitable. This approach raises concerns that bettors might turn to offshore or unregulated platforms in response to rising costs.
In response, some major betting companies, including FanDuel and DraftKings, have implemented a flat transaction fee of $0.50 per bet as a strategy to maintain revenue streams. Unfortunately, this has seemingly contributed to a reduction in customer engagement.
Experienced Bettors Focus on Minimizing Costs
Reports indicate that the number of wagers placed in Illinois fell by approximately 5 million in September 2025 compared to the same month the previous year, marking a 15% decline. While some seasonal factors might play a role, the Sports Betting Alliance attributes this drop mainly to the new tax policy.
Joe Maloney, president of the Sports Betting Alliance, highlighted that Illinois stands out among legalized betting states due to this decline in activity. He pointed out that although the official numbers show fewer bets, many of these wagers are likely shifting to illegal or unregulated markets where fees are lower.
“Experienced bettors are very mindful of their expenses. When legal operators in Illinois impose higher fees, bettors often look for alternatives in unregulated or offshore sites offering better value,” Maloney explained.
Joe Maloney, President of Sports Betting Alliance
The initial goal of legalizing sports betting in Illinois was to attract existing gamblers to the regulated market, reducing player risks and preventing tax revenue loss to illegal platforms. However, the recent changes in tax law appear to be challenging these objectives, raising concerns among industry professionals about the future of legal betting in the state.
