Governor bets FanDuel, DraftKings won’t leave Illinois over hefty sports wagering tax hike

Governor bets FanDuel, DraftKings won’t leave Illinois over hefty sports wagering tax hike

Article brief provided by Chicago Sun-Times
  • Mitchell Armentrout, Chicago Sun-Times
June 2, 2024 1:44 PM
  • Mitchell Armentrout, Chicago Sun-Times

Illinois legislators have called the bluff of online sports betting companies that are suggesting they might reduce operations — or close up shop in the state altogether — after being slapped with a higher graduated tax system in Gov. J.B. Pritzker’s latest budget.

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FanDuel and DraftKings will soon see their net revenue taxed on a scale that tops out at 40% under the spending plan passed by the Illinois General Assembly last week. That’s up from the 15% flat rate levied against sportsbooks since the now $1 billion Illinois industry launched in 2020.

The top two mobile betting giants — who raked in more than $729 million from Illinois bettors last year and have come out on top by nearly a quarter-billion so far this year — say the hike is enough to make them “reevaluate their level of investment and participation in the state.”