Under the newly adopted provision, sportsbooks operating in Illinois will be charged $0.25 for each of the first 20,000 online bets they take annually.
Beyond that threshold, the fee doubles to $0.50 per bet. The measure is estimated to generate an additional $36m in annual revenue for the state.
This development marks a significant escalation in Illinois’ taxation of sports wagering, coming just one year after the state implemented a progressive tax structure on sportsbook revenues.
That 2024 measure, which took effect on 1 July of that year, established a sliding tax rate on adjusted gross sports betting revenue ranging from 20% for operators earning up to $30m to 40% for those exceeding $200m.
The structure applies independently to both online and retail sportsbooks.
The latest fee, however, is not based on revenue but instead levies a flat charge on the volume of bets taken, regardless of their value or outcome.
Industry stakeholders argue this approach disproportionately affects high-volume, low-margin operators and could discourage innovation or promotional offers aimed at boosting engagement.
The last-minute nature of the proposal has drawn criticism from sports betting operators and industry advocates.
The amendment was introduced and approved by House Democrats on the final day of the legislative session, giving opponents minimal time to respond.
Operators’ calls for relief go unanswered
Operators, including Illinois betting leaders FanDuel and DraftKings, issued urgent calls to action to their s in the state, urging them to lawmakers to oppose the measure.The Sports Betting Alliance reported that more than 55,000 emails were sent to Springfield legislators as part of an emergency campaign against the proposed fees.
Despite the coordinated opposition, the state legislature ed the full budget package before the 31 May deadline.
Gov. Pritzker, who has championed the state’s fiscal turnaround in recent years and has a history of wanting to squeeze more out of the gambling industry, confirmed via social media that he would sign the bill.
He framed the budget as a continuation of Illinois’ progress toward financial responsibility and investment in key public services, including education, healthcare, and job creation.
The new per-bet fee places Illinois among the highest-taxed sports betting markets in the United States. Few other jurisdictions impose both a progressive gross revenue tax and a per-transaction fee.
Industry analysts suggest this could lead some operators to reconsider their presence in Illinois or the additional costs on to consumers through reduced promotional offers, higher vig, or narrower betting markets.
The state has positioned itself as a major sports betting hub since legalising the activity in 2020.
In recent years, Illinois has consistently ranked among the top states in monthly handle, often exceeding $1bn in total bets.
However, the new fee structure could alter that trajectory by changing the business dynamics for both new entrants and established brands.
The combination of high revenue-based taxes and a new volume-based fee has prompted concerns about the long-term sustainability of Illinois’ sports betting ecosystem.
