The sports betting industry is trying to intercept another possible tax hike in Illinois.
- The Sports Betting Alliance is sounding the alarm over a proposed per-bet tax in Chicago.
- That per-bet tax would be in addition to the one imposed by Illinois lawmakers in July.
- The state per-bet tax has already generated more than $5 million in additional revenue.
At the end of August, the Chicago Financial Future Task Force, launched by Mayor Brandon Johnson to assist with a forecasted $1.1-billion deficit, recommended the Illinois metropolis consider a 50-cent tax on all online sports wagers placed within its borders.
This could, the task force estimated, generate an additional $17 million in annual revenue for cash-strapped Chicago.
"Currently, the City taxes sports wagering at physical sports wagering facilities where only 2% of all sport betting occurs," the task force said in its interim report. "The remaining 98% of sport betting occurs online and remains untaxed."
Yet the new tax on online sports betting in Illinois would follow the statewide per-bet tax that kicked in at the start of July for mobile sportsbook operators. It would also follow a tax hike that was approved by Illinois lawmakers last year, which increased the revenue-related levy to as high as 40% of receipts for bookmakers.
Updated list of things online sportsbooks are doing in response to the Illinois per-bet tax:
— Geoff Zochodne (@GeoffZochodne) September 2, 2025
bet365: 25-cent fee on bets below $10
BetMGM: $2.50 min bet
BetRivers: $1 min
Caesars: 25-cent fee
Circa: $10 min
DraftKings: 25 or 50-cent fee (unless it's a parlay of $10 or more, a…
So, on Wednesday, it was perhaps unsurprising to see a press release from the Sports Betting Alliance (SBA) warning Chicago's mayor and city council against the idea of another per-bet tax.
The city per-bet tax, noted the SBA, would be in addition to the state’s 25-to-50-cent per-wager tax that operators pay for each mobile bet. That tax is being passed on to consumers by Illinois sports betting sites in the form of minimum wagering requirements or transaction fees.
“If adopted, a $1 bet placed in Chicago would come with a 100% tax rate of $1,” the SBA warned on Wednesday.
The SBA's members are all active in the Illinois sports betting market: bet365, BetMGM, DraftKings, Fanatics, and FanDuel. Those bookmakers are now all paying per-bet taxes in addition to shouldering the burden of the higher tax rate on revenue.
“Illinois residents have voiced their opposition to the state’s per-wager tax, sending over 100,000 contacts to their lawmakers to date and flooding social media with angst over the tax,” the SBA said. “The Mayor and City Council should not double down on this bad idea in Chicago.”
Déjà vu all over again
Whether Chicago goes through with its own per-bet tax remains to be seen. However, figures released by the Illinois Gaming Board show the state generated an additional $5.2 million for itself in July from the new per-bet tax. That could prove tempting for the city council.
The SBA, though, looks like it is trying to head the proposal off. The industry group said Wednesday that more than half of bets placed in Illinois are $5 or less, and that the per-bet tax creates the risk of chasing bettors toward “the cheaper, illegal market.”
“Unregulated, offshore operators offer cheaper sports betting alternatives for consumers, without any protections - including age verification - and without any oversight, not to mention no tax revenue whatsoever,” the SBA said.
