Illinois Marks Third State to Accumulate $50 Billion in Sports Wagers
The Illinois sports betting market, which has shown sustained strength, topping $1 billion in handle for 11 consecutive months, is expected to undergo significant changes due to new tax legislation.
The new per-bet tax in Illinois imposes a charge of $0.25 per wager for the first 20 million bets placed annually by each sportsbook operator, rising to $0.50 per bet thereafter. This tax increase has led major Illinois sportsbooks like FanDuel and DraftKings to pass these costs directly onto customers as a transaction fee starting in the fall of 2025, increasing bettors’ costs by $0.25 to $0.50 per wager.
Fanatics Sportsbook, aiming to stay below the 20 million bet threshold, has chosen to keep its fee lower at $0.25 per bet, potentially gaining a competitive advantage against DraftKings and FanDuel. However, this new tax structure may lead to increased costs for operators amid an already competitive and costly environment.
The market implications of these changes are far-reaching. Bettors might face worse odds or additional minimums as a result of the new tax changes. To mitigate revenue pressure, sportsbooks are adjusting minimum bet amounts, such as BetMGM raising its minimum to $2.50, and re-evaluating customer charges.
There is uncertainty over the future growth of the Illinois sports betting market due to these new tax changes. The increased fees could discourage small bettors, potentially pushing some consumers to illegal or offshore betting platforms. In response, operators may reduce sports betting bonuses and promotions.
Despite these challenges, the Illinois sports betting market has shown resilience. In May 2025, the sports betting handle surpassed $50 billion, with the handle total reaching $1.27 billion that month. High-volume operators like DraftKings and FanDuel are expected to be significantly affected by the new tax changes.
The new tax changes, signed into law as part of Illinois' $55.2 billion state budget, have made Illinois one of the most expensive states for sports betting operators. Monthly tax revenue from Illinois sports betting regularly exceeds $15 million.
In summary, the new per-bet tax in Illinois has caused sportsbooks to increase fees on bettors, raised overall costs for operators amid an already competitive and costly environment, and could potentially influence bettor behavior by making legal bets more expensive relative to unregulated alternatives. The future of the Illinois sports betting market remains uncertain, but it continues to be a top legal sports betting market, eclipsing this mark in five years.
[1]: Source 1 [2]: Source 2 [3]: Source 3 [4]: Source 4
- The increased per-bet tax in Illinois may lead to bettors facing worse odds or additional minimums as a result of the new tax changes (Sources: 2, 3).
- In response to the new tax changes, sportsbooks are adjusting minimum bet amounts and re-evaluating customer charges (Source: 2).
- High-volume operators like DraftKings and FanDuel are expected to be significantly affected by the new tax changes in Illinois (Sources: 3, 4).
- The new tax changes in Illinois have made the state one of the most expensive for sports betting operators, potentially encouraging some consumers to seek out illegal or offshore betting platforms (Sources: 1, 3).
