sports betting tax rates in one of the largest marketplaces in the United States starting July 1.
HB 4951 ed during an all-night legislative session one week ago, with the House of Representatives voting in favor of concurrence for five Senate amendments after the bill ed in the upper chamber. The bill itself is part of the budget package but has yet to be transmitted to Springfield for his signature.
Pritzker’s being introduced May 25.
“The FY25 budget is another demonstration of the fiscal responsibility that has guided me from Day 1 of my istration,” Pritzker said. “This budget is balanced, pro-family, cuts taxes on workers, and opens up doors of opportunity for employers and employees alike. I’m proud to sign it today and look forward to working together to bring these investments to life in a healthier, more prosperous Illinois.”
The bill ed despite Fanatics Sportsbook.
Based on a review of sports betting revenue in Illinois in the most recent 12-month period of figures available covering April 2023 through March, only FanDuel and DraftKings had generated enough revenue to reach the top tax rate of 40%, which would take effect when an operator sures $200 million in revenue.
Pritzker’s signature makes Illinois the first state to have a progressive tax rate dedicated solely to sports betting. Arkansas has a progressive tax rate for all gaming revenue, with sports betting taxes increasing from 13% to 20% when a licensee sures $150 million in total winnings. Illinois also became the 11th state to have any portion of sports betting revenue taxed at 20% or higher.
A review of tax rates and thresholds 541a6a
I'm incredibly proud to sign our sixth balanced budget today.
Our work advances fiscal stability while investing in the state's future and putting money back in the pockets of hardworking Illinoisans.
This is how we open up doors of opportunity for everyone for years to come. pic.twitter.com/uoEQr9k0Jt
— Governor JB Pritzker (@GovPritzker) June 5, 2024
The tax rates and revenue thresholds for individual operators are as follows: The first $30 million in adjusted gross revenue would be taxed at 20% with the next $20 million at 25%. Revenue from $50 million to $100 million would be taxed at 30%; revenue from $100 million to $200 million at 35%; and all revenue above $200 million at 40%.
The 40% tax tier, if reached, would be the second-highest in the U.S. behind the 51% tax on revenue generated by mobile sportsbook operators in sports betting revenue sured $1 billion.
| Licensee | Adjusted Gross Revenue | Tax Revenue Based on Current 15% Rate | Tax Revenue Based on Progressive Tax | Difference in Tax Revenue |
|---|---|---|---|---|
| Fairmount Park (FanDuel) | $421,303,337 | $63,195,501 | $149,521,335 | $86,325,834 |
| Casino Queen (DraftKings) | $349,964,506 | $52,494,676 | $120,985,802 | $68,491,126 |
| Midwest Gaming & Entertainment (BetRivers) | $81,108,012 | $12,166,202 | $20,332,404 | $8,166,202 |
| Hawthorne Race Course (Fanatics Sportsbook) | $51,660,443 | $7,749,066 | $11,498,133 | $3,749,067 |
| Par-A-Dice Gaming (BetMGM) | $43,967,447 | $6,595,117 | $9,491,862 | $2,896,745 |
| Hollywood Casino Aurora (ESPN BET) | $42,433,389 | $6,365,008 | $9,108,347 | $2,743,339 |
| Elgin Riverboat Resort (Caesars Sportsbook) | $36,148,114 | $5,422,217 | $7,537,029 | $2,114,812 |
| Full House Resorts (Circa Sports) | $880,086 | $132,013 | $176,017 | $44,004 |
| TOTALS | $1,027,465,334 | $154,119,800 | $328,650,929 | $174,531,129 |
sports betting apps progressing to higher tax brackets when ing revenue thresholds.
It can be argued that amendment most benefits Rivers Casino, home to BetRivers. The Des Plaines-based venue led all retail sportsbooks with $11.8 million in revenue in 2023 and was the only licensee to reach eight figures.
Concerns of a tax contagion 345l36
Illinois’ new tax structure, coupled with doubling his state’s rate from 10% to 20% last July, has sparked concerns among both industry operators and investment groups that other states could follow suit and raise taxes on sports betting.
DeWine, though, pushed for the increase in response to the barrage of aggressive advertising by operators versus Pritzker’s call to generate more tax revenue. The Buckeye State generated $79.2 million in levies in the second half of 2023 compared to $54.3 million in its first six months after launch.
quickly rejected a proposed budget amendment to raise its online levy from 20% to 51%, which would have matched New York as the highest in the U.S.
