The Sports Betting Alliance in Illinois has issued a negative response to the new sports gambling tax system.

Betting Alliance In Illinois Against New Gambling Tax System

Plans over a progressive sports betting tax system in Illinois have began to pick up speed and the alliance has revealed its disapproval to the possible addition.

According to recent reports, the first step into this new tax system would be a 20% tax on adjusted gross revenue from any amount up to $30 million.

This would cause the biggest issue for betting operators that generate over $200m in adjusted gross revenue, as this will open a 40% tax rate.

During the latter stages of May 2024, House Bill 4951 passed in the Senate and this will now enter the state’s House before being reviewed by Governor JB Pritzker.

Jeremy Kudon, the Sports Betting Alliance president, has claimed to be ‘extremely disappointed’ by the new tax system and could cause operators ‘real harm.’

He said (Via Sports Betting Alliance): “The new system counterproductively penalises sports betting operators who invested millions into the local economy and created jobs in the state.

“The tax hike will mean worse products, worse promotions and, inevitably, worse odds for Illinois customers – not to mention provide a massive leg up to dangerous, unregulated and illegal offshore sportsbooks who pay no taxes and adhere to none of Illinois’ sports betting regulations.

“The tax hike doesn’t just threaten the legal, regulated sports betting market – it will have devastating effects for operators’ in-state partners, including the most vulnerable downstate casinos who rely on sports betting revenue to create jobs and invest in communities.

“Sportsbooks across the industry will have no choice but to re-evaluate their level of investment and participation in the state should this become law.”

Should the plans go ahead, Illinois would become the second-highest sports betting tax state – only behind New York’s sports betting tax which sits at 51%.