The Illinois Gaming Board reported nearly $92 million in adjusted gross sports betting revenue for April, with handle reaching $1.1 billion. The state collected $13.8 million in taxes; from 1 July, a progressive tax will replace the 15% rate, with rates rising to 40% for operators generating more than $200 million in annual revenue.
Operators face a new progressive tax structure from 1 July, with the top rate tied to annual revenue.
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US District Judge Martha Pacold granted Kalshi a partial preliminary injunction blocking Illinois from enforcing new restrictions on its sports event contracts. The judge found the contracts likely qualify as swaps under federal commodities law, but left a separate state transaction fee outside the injunction because the evidence did not establish its effect on federal law.
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.
Illinois sports wagers fell more than 10% year on year in May to just over $1.1 billion, according to Illinois Gaming Board figures. Adjusted revenue declined almost 2% against May 2025, while sports betting tax revenue rose more than 16% to almost $53 million. DraftKings and FanDuel recorded a combined handle of $722.4 million and adjusted revenue of $82.3 million.
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.