An Illinois legislator wants to repeal a per-wager tax on online sports betting operators less than eight months after the Prairie State instituted the law.
Key Takeaways
- The new bill would stop the per-wager tax July 1.
- The legislation wouldn’t alter the current graduated tax system on operator revenue.
- Illinois has seen a decrease in bets placed since the per-wager tax took effect last year.
Rep. Daniel Didech filed House Bill 5143 on Thursday in an attempt to amend the Sports Wagering Act to read that the “tax imposed on master sports licensee for each individual wager placed with the master sports licensee for sports wagering over the Internet or through a mobile application shall end on July 1, 2026. Effective immediately.”
Illinois' online sportsbooks are currently charged 25 cents for the first 20 million bets placed. After that, the rate goes up to 50 cents per wager. This is on top of a unique, progressive tax system that charges operators at least 20% of their revenue and can scale up to 40% based on the amount earned.
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Uphill battle
Chicago is also charging online operators a 10.25% tax rate for doing business in the massive metropolitan area.
All of this makes Illinois one of the most-taxed states in the U.S. for online sportsbooks, who have all passed the per-wager tax onto customers in some form, whether it’s placing a minimum on bets or adding surcharges.
There was significant pushback from sportsbooks and groups that represent them when Illinois lawmakers first proposed the per-wager tax, but it went into effect July 1, 2025. Lawmakers went through with it to generate additional tax dollars, so HB 5143 faces an uphill battle in this legislative session.
Significant decline
Since its implementation, though, the number of bets placed in Illinois has dropped off. Illinois ranked second behind only New York in sports betting handle in 2025 and set an all-time handle high in November.
However, the Illinois Gaming Board’s November 2025 revenue report showed that 6.1 million fewer bets were placed compared to the same month in 2024. The Sports Betting Alliance attributed the 15% year-over-year decrease to the per-wager tax affecting customers.
