Starting this week, Illinois sportsbook operators will pay an increased tax rate. The state’s 2025 state budget included a new, progressive tax rate for licensed sportsbooks based on adjusted gross revenues, which went into effect Monday.
That means sportsbook operators will pay anywhere from 20% – 40% in taxes, up from the original 15% tax, making Illinois’ rate the second-highest in the nation.
The new tax rate is expected to bring in over $200 million in additional revenues for the state. In 2023, Illinois earned just over $1.5 billion in tax revenue from online sports betting operations and casinos. By comparison, the state lottery, which started operating in 1974, had revenue of about $2.32 billion in 2023.
All sports wagering revenue in the U.S. jumped 22% to $3.33 billion in the first quarter of 2024, according to the American Gaming Association. That growth piqued the interest of state governments all over the country.
New York has implemented a maximum 51% tax rate, and New Jersey is considering doubling its tax rate to 30%. A proposal was on the table in Massachusetts to move the state’s tax rate from 20% to 51%, though that measure failed in May, as reported by WBBM NewsRadio.
A 2018 decision from the U.S. Supreme Court struck down a federal law prohibiting sports gambling. Before that, Nevada was the only state where sports betting had been legal. Now, 30 states and Washington D.C. allow online sportsbooks, according to the American Gaming Association.
Original article: https://www.yogonet.com/international/noticias/2024/07/04/72960-illinois-increased-tax-rate-goes-into-effect-sportsbook-operators-to-pay-2040-in-taxes
