Illinois lawmakers impose new tax on sports prediction market wagers
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.
Prediction market operators face a transaction tax while the state’s authority over federally regulated platforms remains contested.