Illinois Considers Reversing Its New Betting Tax Amid a Decline in Bets
Summary
Illinois lawmakers have introduced House Bill 5143 to repeal the state’s recently introduced per-bet sports betting fees after data showed a sharp fall in the number of wagers placed since the tax change. The per-bet levy — $0.25 for each of the first 20 million wagers and $0.50 for each wager thereafter — was added in September on top of an already tiered tax regime. Operators responded by adding per-bet surcharges, and the Illinois Gaming Board’s figures indicate a notable decline in bet counts (around 30 million fewer bets over four months), with both bets and handle falling in December.
Representative Daniel Didech filed HB5143 to roll back the per-bet fees and a separate bill, HB4171, to stop municipalities from imposing their own extra betting taxes after Chicago adopted a 10.25% city tax on sports betting.
Key Points
- House Bill 5143 proposes repealing the per-bet fees introduced in September.
- The per-bet tax charged $0.25 per bet for the first 20 million wagers and $0.50 thereafter.
- Operators added per-bet surcharges, which proved unpopular with customers.
- Illinois saw roughly 30 million fewer wagers across four months after the tax change; December saw declines in both bets and handle.
- Representative Daniel Didech also filed HB4171 to prevent municipalities from levying additional betting taxes (a response to Chicago’s 10.25% city tax).
- Industry warnings anticipated losses, reduced betting volume and potential migration to black-market options — early data appear to support those concerns.
Context and Relevance
The story matters to sportsbooks, regulators and city treasuries. Tax structure changes can shift operator pricing, customer behaviour and market health; Illinois’ experience is a near-term case study showing how per-bet levies can reduce transaction volumes even if total handle temporarily rises. The municipal-tax angle is also important: multiple layers of taxation can compound market distortions and fuel calls for state-level intervention.
Why should I read this?
Short version: if you care about how taxes shape the sports‑betting market — whether you’re a bettor, operator or policy wonk — this could affect prices, player behaviour and city revenue. It’s a quick way to see why one tax tweak has blown up into potential roll-backs and wider legal moves. We’ve done the reading so you don’t have to.
Author style
Punchy: this isn’t just another finance blip — it’s a real-world illustration that poorly judged betting taxes can backfire fast. If you work in the sector, read the detail; it could inform pricing, lobbying or operational strategy.