

Illinois’ new sports betting tax rate takes effect; state now has 2nd-highest rate
Sportsbook operators in Illinois have been paying a 15% tax since the state legalized sports betting in 2019, but starting Monday, that tax rate has more than doubled for some companies.
Illinois’ 2025 state budget includes a new, progressive tax rate for licensed sportsbooks that’s based on adjusted gross revenues. That means sportsbook operators will pay anywhere from 20% – 40% in taxes, which makes Illinois’ rate the second-highest in the nation.
The new tax rate is expected to bring in over $200 million in additional revenues for the state.
In 2023, Illinois earned just over $1.5 billion in tax revenue from online sports betting operations and casinos. By comparison, the state lottery, which started operating in 1974, had revenue of about $2.32 billion in 2023.
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