The Chicago City Council has passed the city’s 2026 budget plan, which will include a 10.25% tax on gambling revenue and is expected to take effect on January 1, 2026.On...
Illinois approves new per-bet fee on sports wagers
Illinois lawmakers have approved a new state budget that includes a tax targeting sports betting, adding a fee of 25 to 50 cents on every wager placed in the state starting July 1.
Under the $55.2 billion budget passed Saturday, sportsbooks will be required to pay 25 cents for each of the first 20 million bets placed in a fiscal year. Any bets beyond that threshold will be taxed at 50 cents each. The change takes effect July 1 and is expected to generate more than $40 million annually for the state.
While the tax is mainly targeting operators, industry experts believe that the added cost will be passed down to consumers, impacting both casual and frequent bettors.
The Sports Betting Alliance criticized the move:
“This is not the end of this conversation. We will continue to fight this discriminatory tax alongside our customers — both right now in Illinois and in any state that considers these harmful tax changes in the future.”
Sports betting is gaining momentum in Illinois
The state has seen a strong interest in the sports betting market. In 2024, the market recorded $14 billion in handle, which is a 20% increase when compared to the previous year. The number is concerning, and with different restrictions, Illinois tries to strictly monitor the market. Recently, Illinois banned credit cards for sports betting, with the Gaming Board also introducing updated record-keeping standards for video gaming sales agents.
State lawmakers have urged Chicago officials to override Mayor Brandon Johnson’s proposed 10.25% city tax on online wagers, with concerns that bettors will turn to offshore,...
