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Illinois 50-Cent Tax on Each Sports Bets Goes into Effect for Some

Sports Writer

Publish Date: Sep 05, 2025

Fact checked by: Sara Jane Gamelli

Key Points

State will charge between 25 and 50 cents per bet depending on revenue thresholds
Illinois is first major state to add betting surchage tax in this manner
Experts predict that the new tax policy could rake in $36 million annually

One tax deserves another, right? Well, sports bettors in Illinois wish that wasn't so. This week, Illinois sportsbooks began adding a surcharge on every wager following a tax instituted by state regulators.

Sports bettors placing wagers in Illinois will now be charged between 25 and 50 cents on wagers due to a policy change in the state earlier this year. The sportsbooks (or most of them) are simply passing along the fee that is being placed on them.

Kentucky sports betting apps

This is a significant shift in the sports betting landscape in Illinois. The per-bet surcharge directly ties to the volume of wagers handled by sportsbook operators. This move, which was effective July 1, 2025, wasn't actually collected until September 1.

How the new sports betting tax works

The new legislation imposes a 25-cent tax on each of the first 20 million sports wagers a licensed operator accepts annually. For any bets exceeding this 20 million threshold, the tax escalates to 50 cents per wager.

A volume-based surcharge is an attempt by the state to increase its revenue from the larger, more active legal sportsbooks in its market, say betting experts. Illinois is the first major sports betting market to try such a tax scheme.

This per-bet fee is in addition to a progressive tax on sports betting revenue that Illinois established in 2024. Under this system, the tax rate is determined by an operator's adjusted gross revenue, creating a tiered structure:

Progressive tax on sports betting revenue

20% on the first $30 million in annual revenue
25% on revenue between $30 million and $50 million
30% on revenue between $50 million and $100 million
35% on revenue between $100 million and $200 million
40% on revenue exceeding $200 million

The primary driver behind these new tax measures is the pressure Illinois legislators feel to balance the state budget and generate additional public funds.

How much could the new policy rake in? Some estimates say the per-bet tax alone will contribute an estimated $36 million in new annual revenue. In many cases that's a rounding error in terms of state tax revenue, but Illinois is desperate for every dollar to get to financial restoration.

Market leaders pass along fee to consumers

The implementation of these surcharges has already had a ripple effect across the Illinois sports betting market.

In response to the increased costs, both FanDuel and DraftKings have begun passing the per-bet fee directly on to their customers in the form of a 50-cent surcharge on each bet placed.

Other sportsbooks have opted to increase their minimum wager requirements to offset the new tax burden.

The new tax has drawn criticism from some within the sports betting industry, who argue that it could inadvertently drive bettors towards unregulated, offshore sportsbooks that do not have the same consumer protections or tax obligations.

There are also concerns that the per-bet surcharge will disproportionately impact casual, small-stakes bettors, making their wagers relatively more expensive.

The long-term effects of these new taxes on the competitiveness and growth of the legal sports betting market in Illinois remain to be seen. Check out our Ballislife Play page for more news and updates.

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