Illinois lawmakers approved a $55.9bn fiscal 2027 budget that introduces taxes on fantasy sports operators and prediction-market sports betting. The plan establishes a fantasy sports licensing framework and a 15% industry tax; lawmakers said fantasy sports and digital asset taxes are expected to raise about $65m.
Fantasy sports operators face a new licensing framework and 15% tax under the approved state budget.
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Illinois Representative Travis Weaver is seeking to repeal the state's recently introduced sports prediction market tax. The proposal would remove a 1.75%-to-3.5% transaction tax that Kalshi and the CFTC have challenged.
Kalshi filed a federal lawsuit against Illinois officials challenging a state law that imposes a 15% tax on sports-related prediction markets, according to the available report snippet.
Illinois lawmakers passed the FY2027 budget, which taxes sports-event prediction market transactions at 1.75%, rising to 3.5% after a licensee exceeds five million wagers in a fiscal year, according to the report. The budget also establishes licensing and taxation rules for daily fantasy sports under the Illinois Gaming Board. The tax comes amid a jurisdictional dispute with the CFTC, which sued Illinois in April.
Kalshi has filed a federal lawsuit against Illinois over a new 15% levy on gross receipts from sports-event contracts on prediction markets. The law, part of a $56bn annual budget signed by Governor JB Pritzker, takes effect on 1 July. Kalshi is seeking a temporary restraining order and accuses the state of violating the US Constitution's Supremacy Clause.
Illinois lawmakers passed an omnibus revenue bill on 1 June that would allow the Illinois Gaming Board to extend Bally’s temporary Chicago casino licence. The bill awaits Governor JB Pritzker’s signature; its provisions allow up to 18 months’ extension, plus no more than two additional three-month extensions, while the report says the licence could run to 9 September 2027.