TLDR
- Illinois became the first state to impose a per-wager fee on sports betting in June 2025
- The tax charges sportsbooks $0.25 per wager for the first 20 million bets annually, then $0.50 per bet after that threshold
- September 2025 saw a 15% drop in sports betting wagers compared to September 2024, with five million fewer bets placed
- The per-wager tax has already generated over $21 million in revenue for Illinois since implementation
- Chicago Mayor Brandon Johnson has proposed an additional 10.25% city tax on online sports wagering for 2026
Illinois has become the first state in the country to impose a per-wager tax on sports betting. The new law is already generating millions in revenue but causing a steep decline in legal betting activity.
Governor JB Pritzker signed House Bill 2755 in June 2025. The bill created a fee system that charges sportsbooks $0.25 per wager for the first 20 million bets placed annually. The fee increases to $0.50 per bet once that threshold is met.
The Illinois Gambling Board reported a 15% drop in September sports betting activity. Five million fewer bets were placed in September 2025 compared to September 2024.
Maura Possley, spokesperson for the Sports Betting Alliance of Illinois, said the decline is a red flag. She warned that Illinois sports fans are fleeing the legal betting market for cheaper illegal options.
Revenue and Implementation
The per-wager tax has generated over $21 million in revenue since taking effect. Reports submitted to the Illinois Gambling Board show the 20 million wager threshold was reached in the first month. The state collected $5 million during that period.
The tax revenue total covers the start of NFL and NCAA football seasons. It does not include revenue from NBA and NHL regular seasons that began after the most recent public reports were released.
More than 68 million online wagers have been placed on professional sports since the revised law kicked in. Those bets represent a fraction of the $13.18 billion total dollars bet in Illinois from August 2024 to August 2025.
Sportsbooks have responded to the fee by raising minimum betting amounts or passing the tax directly to bettors. DraftKings, FanDuel, and other platforms adjusted their pricing structures after the law took effect.
The revenue from the per-wager tax goes to the Sports Wagering Fund first. It then transfers to the General Revenue Fund, which serves as the state’s checking account. Unlike other sin taxes in Illinois, the sports betting fee does not have earmarked funds for specific programs.
Legislative Process and Opposition
House Bill 2755 was introduced in February 2025 by State Rep. Curtis J. Tarver II. The bill originally included a designation for statewide “Emmett Till Day” in its title. By the time it was signed into law, all references to Till had disappeared from the 1,283-page revenue reform bill.
The final House vote on May 31 passed the bill 71-43. All opposing votes came from Republican representatives.
The Sports Betting Alliance launched a campaign against the tax after the bill was introduced. The lobbying group represents DraftKings, FanDuel, BetMGM and other popular sportsbooks. The campaign resulted in lawmakers receiving nearly 100,000 emails against the per-wager tax.
Former New England Patriots tight end Rob Gronkowski publicly endorsed the opposition campaign on social media. The group invited fans to record videos explaining how the tax would affect their betting experience.
Illinois already had the fifth-highest tax rate on sports betting in the country before the new law. The per-wager fee adds to existing state taxes on the industry.
National Trends and Chicago’s Proposed Tax
Possley said the decline in Illinois betting activity is a dramatic departure from national trends. Earnings reports from betting companies show sports betting is increasing across the country.
September is typically a busy month for sports betting. Pro football season, college football, and baseball’s pennant races all overlap during this period. The decline in Illinois suggests the tax is having an impact on bettor behavior.
Chicago Mayor Brandon Johnson has proposed an additional city tax on online sports wagering. The 2026 budget proposal includes a 10.25% tax on online sports betting. The city already taxes in-person sports wagering at 2%, which would also rise to match the online rate.
The budget proposal estimates roughly $26 million in tax revenue from online sports wagering. This would help address the city’s $1.1 billion budget deficit.
State lawmakers have moved to block similar measures at the local level. House Bill 4171 would amend the Sports Wagering Act to prohibit municipalities from imposing additional wagering taxes. The bill was introduced October 20 by Rep. Daniel Didech and sponsored by Rep. Curtis Tarver II. It has bipartisan support but has not advanced since filing.
Impact on Bettors and Market Concerns
Noah Henderson, a sports economics professor at Loyola University Chicago, called the tax regressive. He said it disproportionately affects lower-income and small-scale bettors who place $5 or $10 wagers.
The tax particularly impacts parlay bets, which combine multiple wagers that must all win to pay out. This type of gambling is popular with small-scale bettors chasing big payoffs but carries more risk than straight bets.
Illinois Attorney General Kwame Raoul and his counterparts in other states have asked the U.S. Department of Justice to take action against illegal online gaming. Possley noted agreement among attorneys general that the illegal market is expanding without consumer protections or oversight.
There are only 15 brick and mortar sportsbooks in Illinois. DraftKings at Wrigley Field serves as the only such outlet within Chicago city limits.
Chris Tuell, Clinical Director of Addiction Services at the Lindner Center of Hope in Cincinnati, noted problem gambling has the highest suicide rate of all addictive behaviors. About 25% of men under age 30 have placed bets online, and approximately 10% of those have problem gambling issues.
Possley warned that an additional Chicago betting tax would be unprecedented. She said it would drive more people to the illegal market and hurt future tax revenues.
