A brand new invoice in Illinois goals to repeal the state’s controversial per-wager tax on on-line sports activities betting. Home Invoice 5143, launched by Rep. Daniel Didech, seeks to finish the tax on particular person on-line sports activities wagers positioned via 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 extend state income. Below 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 expenses operators a proportion of their income, starting from 20% as much as 40%, relying on the quantity earned.
The per-wager tax was anticipated to generate a further $36 million yearly for the state. Nevertheless, in response to knowledge from the Illinois Gaming Board, the tax led to a noticeable decline in sports activities betting exercise, notably 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 comparison with the earlier 12 months. This drop in betting exercise was attributed to the per-wager cost by the Sports activities Betting Alliance (SBA), which represents main operators like FanDuel, DraftKings, and BetMGM.
Whereas the Illinois Gaming Board reported a drop within the variety of bets, the state’s general 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 guess stakes to offset the tax, passing the fee onto clients. This adjustment has contributed to frustrations amongst each bettors and operators.
The introduction of the per-wager tax is a part of a broader pattern of accelerating tax burdens on sportsbooks in Illinois. Along with the per-wager price, 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 as much as $30 million and escalating to 40% for income above $200 million.
On prime of the state taxes, Chicago imposes a ten.25% tax price on on-line sports activities bets positioned throughout the metropolis limits, whereas Prepare dinner County provides a further 2% tax. This cumulative taxation makes Illinois probably the most costly states for sportsbooks to function in, resulting in requires tax aid from the trade.
Based on 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. Nevertheless, this effort faces resistance from lawmakers who argue that the tax is a crucial income for the state.
The Competing Forces Behind HB 5143
The talk over Illinois’ sports activities betting taxes will not be restricted to the state legislature. There was vital pushback from sportsbooks and trade associations, who argue that the tax burden harms their means to compete with unlawful betting platforms. Based on the SBA, the discount in bets positioned on authorized sportsbooks is a direct results of the per-wager tax, which has pushed clients 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.
Whereas the state has skilled general 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 alternate options. This example mirrors nationwide traits, the place unlawful betting continues to siphon income from regulated markets.
Illinois continues to be a significant participant within the U.S. sports activities betting panorama, rating second behind New York in whole sports activities betting deal with for 2025. Regardless of the current drop within the variety of bets positioned, the state’s authorized sports activities betting market stays strong. The state’s sports activities betting trade has grown quickly since legalization, notably in areas like Rockford, the place cell sports activities wagering has flourished.
Nevertheless, the state’s excessive taxes and costs stay a problem for operators. The passage of HB 5143 may sign a shift in Illinois’ strategy to sports activities betting regulation, making it extra aggressive with different states. By eliminating the per-wager tax, Illinois would create a extra favorable setting for authorized sportsbooks, doubtlessly drawing extra gamers to licensed platforms and curbing unlawful betting actions.
