Illinois Experiences 15% Drop in Sports Betting Due to High Tax Impacting Gambling Community

Decline in Sports Betting in Illinois Following Tax Changes

Recent data from the Illinois Gaming Commission indicates a significant drop in sports betting activity within the state. After the introduction of a new tax system in September 2024, the first 20 million bets placed by each sportsbook are taxed at $0.25 per bet, with the rate rising to $0.50 per bet beyond that threshold.

This shift prompted Illinois’ leading sportsbooks, FanDuel and DraftKings, to impose a $0.50 surcharge on bets, effectively transferring the tax burden to consumers.

When comparing September 2024 to September 2025, the number of bets placed in Illinois decreased by 5 million, marking a 15% decline year-over-year. This drop has caught the attention of some in the industry.

Joe Maloney, Chairman of the Sports Betting Alliance, expressed surprise at the extent of the decrease. “I mean, this is the only place in all 30 states where legal online sports betting is actually taking place,” he noted.

Maloney emphasized that it’s unlikely that a significant number of bettors have completely stopped wagering. Instead, he worries that many have simply turned to unregulated and illegal online platforms, along with traditional bookmakers.

According to recent reports, total wagers in Illinois have also fallen by 15% in both September and October, largely attributed to the new tax rates and fees.

“Savvy bettors pay close attention to costs, right?” Maloney pointed out. “When you have multiple competitors in a regulated market alongside numerous illegal options, bettors will naturally choose the better price.”

Moreover, when bettors engage with unlicensed operators, they lack protections and recourse in disputes, winnings, or fraud. This concern drives the push for legalizing and regulating sports betting.

“The goal was to protect consumers who were already participating in something illegal,” Maloney explained. “We want to create a transparent marketplace, offering consumer protections and avenues for recourse. If winnings aren’t paid, people should be able to reach out to regulators or even the attorney general.”

In addition, another reason for legalizing and regulating sports betting is to boost state tax revenue. Maloney believes this is something the Illinois Legislature needs to think about seriously.