Illinois policy group says lawmakers should roll back sports betting tax fee

“Lawmakers should roll back the per-bet fee,” says the non-profit think tank The Illinois Policy Institute in its publication ‘Illinois… Continue reading Illinois policy group says lawmakers should roll back sports betting tax fee The post Illinois policy group...

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Sep 26, 2025 - 21:04
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Illinois policy group says lawmakers should roll back sports betting tax fee
A photograph of a weathered wooden sign prominently displaying "Illinois" in bold white letters. The sign is slightly angled, positioned in the foreground with a vintage aesthetic. Behind the sign, a two-lane highway stretches into the distance under a clear blue sky, lined with fields of golden wheat gently swaying in the breeze. Warm afternoon sunlight illuminates the scene, casting long shadows and highlighting the texture of the sign and the vastness of the American landscape.

“Lawmakers should roll back the per-bet fee,” says the non-profit think tank The Illinois Policy Institute in its publication ‘Illinois Policy’ when discussing sports betting taxes in the state.

According to the writer of the article, Dylan Sharkey, sports betting in Illinois comes with the fifth-highest taxes in the nation and leads the Midwest.

The area’s lawmakers had previously raised the state’s tax on online sports gambling from 15% to as high as 40%, with a new fee added onto every wager. This includes 25 cents per bet or 50 cents if a sportsbook takes more than 20 million bets a year.

It’s also reported that Illinoisans lost $1.12 billion betting on sports in 2024, including $700 million on ‘long-shot, high-payout bets known as parlays that require multiple outcomes.’

“With the new fees in effect, those losses will climb ever higher,” says Sharkey in the Illinois Policy.

“The state budget is counting on those losses. Lawmakers expect even more sports betting revenue next year – which only happens if Illinoisans gamble, and lose, more money.”

The writer continues to suggest that lawmakers should roll back the per-bet fee and “keep Illinois’ market attractive to players.”

Aside from Illinois, which states also have high sports betting taxes?

According to data from the Tax Foundation, New Hampshire, New York, Oregon and Rhode Island have some of the highest tax rates as these are at 51% of sportsbook revenues.

Meanwhile, Nevada and Iowa levy the lowest tax rates with these standing at 6.75%. Illinois isn’t the only state to have a different approach to taxing sports betting either, like with its additional ad quantum fee per bet. In Tennessee, there’s a tax directly on the sports betting handle.

In Oregon, the lottery granted DraftKings a monopoly for online sports betting in exchange for the state receiving 51% of the sports betting proceeds.

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