The Illinois Senate approved a bill setting graduated tax rates on online sports betting revenue, ranging from 20% to 40%, according to the report. The proposal now goes to the Illinois House for reconciliation and then to Governor J.B. Pritzker; Deutsche Bank analyst Carlo Santarelli forecast further state tax increases elsewhere.
The proposed rates could change operators’ tax liabilities if the Illinois bill becomes law.
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Illinois Representative Daniel Didech filed House Bill 5143 to repeal the state’s per-bet sports betting fees. Illinois Gaming Board figures cited in the report show nearly 30 million fewer wagers over four months; a separate bill would bar municipalities from adding betting taxes.
Illinois state Senator Patrick Joyce filed SB 2760, which would reduce Chicago’s share of state revenue distributions by the amount the city collects through sports wagering fees or surcharges. The proposal comes as Chicago’s 2026 budget, including a 10.25% tax on city-based sports betting operators’ revenue, is due to take effect; Mayor Brandon Johnson said he would neither sign nor veto the budget ordinance.
Illinois recorded 15% fewer sports bets in September, with five million fewer wagers, according to figures attributed to the Illinois Gaming Board. Bettors wagered $1.4bn, while sportsbook revenue fell to $103m from $131m a year earlier; the levy generated $10.6m in receipts. Sports Betting Alliance of Illinois spokesperson Maura Possley said the tax increase was driving players away from regulated betting.
Five Illinois Democratic lawmakers introduced a bill to bar municipalities and counties from taxing or charging fees on sports betting. Rep. Daniel Didech filed the measure on 20 October in response to Chicago’s proposed 10.25% tax on online sportsbook revenue from bets placed within city limits; the General Assembly is due to reconvene on 14 January.
Illinois Rep. Daniel Didech filed HB 4171 to reserve sports wagering regulation and taxation to the state. The proposal would bar municipalities from taxing sports betting or related receipts; it is due for consideration when the next legislative session begins on 14 January 2026. Chicago Mayor Brandon Johnson has proposed a 10.25% levy on sports betting revenue as part of the city’s 2026 budget plan.