Wall Street analysts were taken aback by an 11th-hour Illinois budget measure that added handle taxes to those levied on sports book revenue. Gov. J.B. Pritzker has indicated that he will sign the tax hike which will take effect on July 1.
The budget calls for a 25% tax on monies wagered up to $20 million, and then it leapfrogs to 50% on anything higher. Illinois’ new levy follows upon a 2024 escalation in the progressive tax paid on sports betting revenues.
The 50% level’s effect, explained Truist Securities analyst Barry Jonas, would fall upon FanDuel and DraftKings, having taken 164 million and 146 million bets respectively between March 2024 and April 2025. BetMGM would be the third-most affected, after booking 16 million wagers in that timeframe.
