Online sports betting stocks retreated Monday after Illinois lawmakers approved a budget that again raised taxes on wagers, heightening investor alarm that other states could follow suit.
DraftKings dropped 6%, while Flutter Entertainment shares fell more than 2%. The Roundhill Sports Betting & iGaming ETF pulled back by more than 1%.
Both chambers of Illinois’ state legislature passed a budget that includes a tax of 25 cents per wager on the first 20 million online sports bets made each fiscal year, rising to 50 cents per bet after.
Illinois Gov. J.B. Pritzker issued a statement saying he would sign the budget, according to local news reports.
