Illinois lawmakers have submitted a measure that could overturn the recent introduction of a new tax regime after the changes led to a significant decrease in wagers. Figures from the past few months suggest that the operators might have been right about the adverse effects.
Operators Were Wary of the Changes from the Start
In September, Illinois implemented its new tax changes, which introduced an additional per-bet sports betting tax. The tax required sportsbooks to pay an additional $0.25 for each of their first 20 million wagers and $0.50 for each wager after that.
Since operators had to implement new measures to cope with the new tax regime, many implemented a per-bet surcharge, which proved to be a very unpopular, if necessary, measure.
To top it all off, the extra tax came only a year after Illinois introduced a tiered tax structure that replaced its previous 15% tax rate.
The most recent tax change was passionately scrutinized by operators as many gaming companies warned that it could lead to some serious adverse effects. These included losses, a decline in betting volume and a potential drain of players to the black market.
With new figures suggesting that the operators might have been right, lawmakers are now seeking to overturn the extra tax.
Rep. Didech Seeks to End the Extra Tax Burdens
Under House Bill 5143, Illinois would repeal the new per-bet fees, returning the market to how it was before. The measure is the brainchild of Representative Daniel Didech, who argued that the extra tax harms the industry.
For context, official data from the Illinois Gaming Board suggests a sharp drop in wagers in the wake of the per-bet tax’s introduction. While the betting handle increased in September, October, and November, the total number of bets decreased significantly, suggesting that players are placing fewer, larger bets. In December, both the total number of bets and the betting handle decreased.
Overall, Illinois experienced a decrease of almost 30 million wagers over four months.
In addition to seeking to overturn the per-bet tax, Didech has also filed House Bill 4171, which would block municipalities from imposing additional betting taxes. This comes after Chicago eyed and later passed a 10.25% city tax on sports betting on top of other existing taxes.
Illinois lawmakers have submitted a measure that could overturn the recent introduction of a new tax regime after the changes led to a significant decrease in wagers. Figures from the past few months suggest that the operators might have been right about the adverse effects. Operators Were Wary of the Changes from the Start In