Illinois State Legislators United Statespresented a bill to revoke the tax charged for betting on sports betting, after a significant drop in the volume of tickets registered in recent months.
Deputy Daniel Didech filed the House Bill 5143which proposes the end of the $0.25 per bet for the first 20 million bets and $0.50 above that volume. The measure comes after official data indicates that the market processed 27.6 million fewer bets between September and December, in an annual comparison.
Despite the drop in the number of bets, the value handled (handle) remained relatively resilient for part of the period, indicating that bettors started to place bets fewer bets, but with higher values.
Consistent drop in betting volume
Data from the Illinois Gaming Board shows four consecutive months of decline in the number of bets:
September
- 2024: 33.6 million bets
- 2025: 28.5 million
- Variation: –15%
- Financial volume: +9.2% year on year
October
- 2024: 38.1 million
- 2025: 32.1 million
- Variation: –16%
- Financial volume: +11%
November
- 2024: 40.1 million
- 2025: 33.9 million
- Variation: –15%
- Financial volume: +8.1%
December
- 2024: 38.4 million
- 2025: 28.8 million
- Variation: –25%
- Financial volume: –3.4%
Added together, the four months represent 27.6 million fewer bets compared to the same period of the previous year. In 2025, the state recorded a drop of approximately 4.1% in total annual bets — an unusual movement among large regulated markets in the US.
The reduction also impacted revenue, with estimates pointing to around US$6.9 million less in tax revenue in the period analyzed.
Operators passed on costs to bettors
The betting tax was the second tax increase in two years. By 2024, Illinois had already replaced the flat 15% tax on gross revenue with a progressive structure, raising the burden on large operators like FanDuel and DraftKings to up to 40%.
After the creation of the per-ticket fee, several companies adopted surcharges or raised the minimum bet value:
Bet surcharges:
- FanDuel and DraftKings: $0.50
- Fanatics and Caesars: $0.25
- bet365: $0.25 on bets under $10
New minimum bet amounts:
- theScore: US$1
- Hard Rock Bet: $2
- BetMGM: $2.50
- BetRivers: $5
- Circa: US$10
The change mainly affected recreational bettors with a lower average ticket, reducing the total number of bets placed.
Political debate and municipal tax
In addition to the project to revoke the state tax, Didech presented the HB4171which seeks to prevent municipalities from creating their own taxes on sports betting.
The topic gained momentum after Chicago Mayor Brandon Johnson approved a 10.25% municipal tax on sports betting revenue, effective January 1, 2026.
The Sports Betting Alliance (SBA), which represents major operators, called the situation “a lose-lose scenario” and took legal action against the city.
Parallel with Brazil: warning about high tax burden
The Illinois case raises a relevant debate for the Brazilian market sports betting and iGaming.
In Brazil, federal regulation establishes:
- 12% on gross revenue (GGR) for operators
- Additional taxation on prizes
- High license costs and regulatory requirements
States and municipalities are also discussing ways to increase revenue, which could increase the total charge even further.
The Illinois experience suggests that successive tax increases can:
- Reduce the number of bets
- Encourage operators to pass on costs to the consumer
- Reduce competitiveness in the unregulated market
- Impact revenue in the medium term
Although the financial volume may be maintained temporarily, the drop in participation indicates a possible retraction in the recreational market — precisely the public most sensitive to additional costs.
For the Brazil, which is still consolidating its regulated market, the balance between revenue and operational sustainability can be decisive to avoid migration of players to offshore platforms.
Fonte: Gaming365 – Brasil
