Illinois lawmakers consider sports wagering tax hike on eve of March Madness

Patrick M. Keck, Springfield State Journal- Register
Updated ·2 min read
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With millions expected to place bets this year, sportsbooks can again expect major yields during March Madness.

They could be facing higher taxes in Illinois in the near future, as well.

Issued on licensed sportsbooks, the sports wagering tax is placed on the gross income made from wagers. Ahead a "tight" budget year, Gov. JB Pritzker is now calling for an increase to the tax as part of his proposed $52.7 billion budget.

"Our FY 25 budget proposal makes some hard choices," the Democratic governor said during his State of the State and budget address last month. "I wish we had big surpluses to work with this year to take on every one of the very real challenges that we face."

More: Pritzker’s budget proposal calls for child tax credit, elimination of grocery tax

Illinois Fighting Illini forward Amani Hansberry (35) tries to knock the ball from Iowa Hawkeyes forward Ladji Dembele (13) Feb. 24, 2024, during the first half at State Farm Center in Champaign, Illinois.
Illinois Fighting Illini forward Amani Hansberry (35) tries to knock the ball from Iowa Hawkeyes forward Ladji Dembele (13) Feb. 24, 2024, during the first half at State Farm Center in Champaign, Illinois.

Pritzker's proposal would see the sports wagering tax increase from 15% to 35%, netting the state an additional $200 million in revenues per year per the governor's office. It also is part of the more than $800 million in potential tax increases in the next fiscal year starting July 1, 2024.

An increased sports wagering tax would see revenues grow from an estimated $151 million in the current fiscal year to a forecasted $354 million in FY25. The increased revenues, the governor's office said, would be split to fund capital projects and to go into the state's general fund.

This March marks the fourth year of legalized sports gambling in Illinois, a burgeoning industry netting the state billions in tax revenues.

Last year alone, the Illinois Gaming Board reported $1.5 billion in combined casino gambling, video gaming and sports wagering tax revenues.

The governor's proposal is being weighed by lawmakers as they craft the budget in coming weeks. Further conversation in Springfield is also surrounding bills that would green-light internet gaming and place regulations on daily fantasy sports.

Editor's note: An earlier version of this story erroneously reported the proposed increase would make Illinois' sports wagering tax the third highest in the country.

Contact Patrick M. Keck: 312-549-9340, pkeck@gannett.com, twitter.com/@pkeckreporter.

This article originally appeared on State Journal-Register: Pritzker calls for increased tax on Illinois sportsbooks