Designed to be “more closely aligned with peer states”, the tax is projected to increase total state betting tax receipts by more than $200m to $354m.
The state collected $144m in revenue from licensed sports betting operators during 2023.
According to the $52.7bn budget, the first 15% of the tax would continue to be directed to the state’s infrastructure Capital Projects Fund.
Meanwhile, the additional 20% would flow directly into the state’s coffers. The state has struggled with a budget shortfall this year, which the increased betting tax rate would reduce.
“I wish we had big surpluses to work with this year to take on every one of the very real challenges we face,” said Pritzker during the budget announcement.“It’s important to note, that while this budget is tight this year, our fiscal house is in order, and we are able to keep our commitments to the people of Illinois.”
Illinois 2019 gaming law
The Prairie State ed its Sports Wagering Act in 2019, with the first legal bets placed during March 2020.
The law created a tethered licensing system, with mobile operators given the option of partnering with a master licensee, meaning either a casino, racetrack or sports team.
Additionally, the law provides for three online only licences issued directly to online sports betting businesses.
As of February 2024, FanDuel, DraftKings, Caesars Sportsbook, BetMGM, Fanatics and ESPN Bet are already live in the market, with other operators like Bally’s in negotiation with the Illinois Gaming Board.
On DraftKings’ Q4 earnings call, CEO Jason Robins highlighted Illinois as a state that could potentially legalise iGaming in 2024.
