The per-bet tax installed on betting companies in Illinois is showing signs of real impact on the betting market.
The Illinois Gaming Board has released statistics showing that wagering decreased by 15% in September compared to the previous month, and $10.6 million was recouped through taxation.
The tax originates from the $55.2 billion budget approved and signed by Governor J.B. Pritzker in mid-2025, which included $480 million in overall tax increases to fund statewide investment.
Tax increases hit big players hard
According to the Illinois Gaming Board’s Sports Wagering Monthly Reports, there is a marked decrease in wagering. This could be attributed to millions of bets now subject to the tax increase, which could be dissuading bettors across the state.
FanDuel and DraftKings, two of the biggest operators in the state, felt the taxation pinch through partnerships with Fairmount Park, Inc., and Casino Queen, Inc., respectively.
FanDuel reported that across 11 million wagers, there was a $4.5 million tax bill, and DraftKings had a similar receipt for the 11.25 million wagers placed for $4 million in taxes.
Before the bill was signed into law, we reported that Jason Robins, the CEO of DraftKings, publicly criticized the bill, saying that, despite meeting with state leaders, the proposed budget did not include the tax hike.
“All it’s (the now approved tax legislation) going to do is drive people to the illegal market or drive people to bet more. It just makes no sense, and it was done in the dead of night. We had no warning, actually met with legislative leaders in the weeks before the budget was released, and they made no mention of this,” said Robins in July 2025.
The Sports Betting Alliance (SBA), which represents the lobbying interests of both operators, was vocal about the impact of taxation,
“It (the reporting) shows that bets plunged in Illinois after the law was put in place and is a red flag that Illinois sports fans are fleeing the legal betting market in favor of the cheaper, illegal market,” Illinois spokesperson Maura Possley told The Centre Square.
More taxes incoming for Illinois?
Chicago Mayor Brandon Johnson’s proposal for an additional 10.25% city gambling tax would also mean that, come January 1, 2026, major operators like FanDuel and DraftKings could be paying 51% in taxes to operate in Chicago and Illinois.
An excerpt from the budget proposal states that the tax is “a 10.25% rate on adjusted gaming receipts from online sports betting licensees—an industry that has grown rapidly, with over $48 billion wagered nationwide in the past five years. The measure ensures this expanding sector contributes to the City’s shared priorities.”
The illegal betting market was a concern, said Possley, who cited that federally appointed individuals agreed that the tax increase could lead more bettors to turn to illicit sites.
“You see agreement among all of the attorneys general across the country that the illegal market is a serious concern. It’s rapidly expanding without any consumer protections and zero oversight,” Possley said.
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