Illinois Bill Seeks to Repeal Per-Bet Sports Betting Tax as Wager Counts Fall for Four Straight Months

Rep. Daniel Didech has filed House Bill 5143, which would repeal Illinois’ per-bet sportsbook tax — $0.25 on the first 20 million wagers and $0.50 thereafter. The bill comes as official data show ticket counts declining even when handle remains resilient, indicating bettors are placing fewer but larger wagers to offset rising costs.

Figures from the Illinois Gaming Board illustrate the shift across four straight months.

Bets Down Across the Board

Since September, total wagers in Illinois have fallen sharply year over year, with the four months representing the clearest sustained decline since sports betting launched in the state.

September

• 2024: 33.6 million bets
• 2025: 28.5 million bets
• Change: –15%
• Handle: + $120 million YoY (+9.2%)

October

• 2024: 38.1 million
• 2025: 32.1 million
• Change: –16%
• Handle: + $160 million YoY (+11%)

November

• 2024: 40.1 million
• 2025: 33.9 million
• Change: –15%
• Handle: + 124 million YoY (+8.1%)

December

• 2024: 38.4 million
• 2025: 28.8 million
• Change: –25%
• Handle: – $50 million YoY (-3.4%)

Combined, the four months account for roughly 27.6 million fewer wagers placed than the same period a year earlier. For the entirety of 2025, bets were down about 4.1% statewide, making Illinois one of the few major regulated markets to post a sustained decline in participation.

The slowdown is already hitting state finances. Industry estimates show the wagering shortfall translated into roughly $6.9 million less tax revenue than expected over the four-month stretch, the opposite of what the per-wager tax was intended to do.

December data show the steepest drop in participation. Tier 1 wagers — which Illinois law defines as pre-game wagers on a game’s final outcome — fell nearly 40% year over year, even as handle declined only 7%, indicating bettors placed fewer but larger tickets.

Operators Passed the Cost to Customers

The per-bet tax hike in 2025 was the second increase in two years. In 2024, Illinois replaced its flat 15% tax on gaming revenue with a progressive, tiered structure. The largest sportsbooks, such as FanDuel and DraftKings, saw their rate jump to 40%.

After lawmakers approved the per-bet fee, FanDuel introduced a per-bet surcharge, with DraftKings quickly following. Other operators adopted similar surcharges or raised minimum bet thresholds.

• Surcharges: FanDuel, DraftKings ($0.50); Fanatics, Caesars ($0.25), bet365 ($0.25 on bets under $10)
• Minimum Bets: theScore (formerly ESPN Bet, $1), Hard Rock Bet ($2), BetMGM ($2.50), BetRivers ($5), Circa ($10)

BetRivers, historically popular with low-stakes recreational bettors, increased its minimum to $5 from $1, likely due to a sharp drop in ticket volume.

Policy Response Expands Beyond the State Tax

Didech has also filed another bill, HB4171, which would block municipalities from imposing their own sportsbook taxes. He has said that the Illinois Sports Wagering Act “was never intended to give local governments authority to create their own rules,” according to multiple reports.

The proposal has drawn 27 additional co-sponsors and is one of several bills seeking to pre-empt Chicago — and any other municipality — from layering a separate tax on top of the state’s structure.

Chicago Mayor Brandon Johnson proposed a 10.25% city tax on sportsbook revenue as part of his 2026 budget. The measure faced pushback and revisions in the City Council but was ultimately adopted as part of the final budget package and took effect Jan. 1.

Sports Betting Alliance (SBA), which represents the interests of U.S. online gambling operators, called the decline an “alarming evidence that tax hikes are creating a lose-lose situation for fans.”

The SBA filed two lawsuits against the city, challenging both the new tax and proposed licensing requirements. It later withdrew the licensing complaint; its challenge to the tax’s constitutionality remains active.