In an interesting economic development, Illinois became the second state to record at least $1 billion in sports betting tax revenue, after New York. Per the October sports wagering report from the Illinois Gaming Board, Illinois has surpassed $1 billion in tax revenue since legalizing wagering in 2020. Over its first five years, Illinois has pulled in nearly $1 billion in betting taxes, landing it in second place nationwide behind only New York’s $3.2 billion haul. Illinois is third in the country in terms of legal sports betting handle (behind New York and New Jersey) and revenue, with $55 billion and $4.7 billion reported, respectively. Illinois’ unique and aggressive tax policy helped it get to this point. With rates beginning at 20% and rising to 40% for the highest-earning operators, the state became the first in the country to adopt a progressive tax system.
In this article, SBS will be going over the latest gaming news and notes coming from Illinois, along with a variety of excellent notes and info you can only find at SBS.
Per the same report, this past July, the state went one step further and implemented a new per-bet fee. Sportsbooks now pay 25 cents for the first 20 million bets they receive each year, after which they pay 50 cents. In its first month alone, the fee brought in almost $5 million. The majority of the tax money from legal Illinois sports betting goes straight into the state’s general fund. This supports pensions, healthcare, and education. A significant and consistent source of income, it is helping a state that has long struggled with budgetary issues. In contrast, nearby Iowa sportsbooks only pay a 6.75% rate on revenue, and that won’t rise to 9% until the summer of 2026.
In other gaming news, Illinois’ sports betting industry experienced a pronounced drop in wagering volume this fall, making September the first full month under the state’s newly implemented per-wager tax. Data from the Illinois Gaming Board (IGB) and statements from industry groups show that bettors placed five million fewer bets compared to September 2025, amounting to about a 15% year-over-year decline in total wagers. According to the Sports Betting Alliance (SBA) of Illinois, operators and players felt the effects of the new tax policy almost immediately.
The group noted that “when compared to September 2024, the September 2025 data shows that 5 million fewer bets were placed in Illinois – or a 15% decrease,” citing IGB figures. SBA spokesperson Maura Possly emphasized that the trend demonstrates a meaningful shift in betting behavior. “It shows that bets plunged in Illinois after the law was put in place, and it is a red flag that Illinois sports fans are fleeing the legal betting market in favor of the cheaper, illegal market,” Possly told a local outlet.
As noted in the same report, Illinois law does not require wagering operators to pay a 25-cent fee on each online or mobile bet through the first 20 million wagers, with the amount doubling to 50 cents per bet after the threshold. Most operators responded by instituting small minimum bet sizes, but major platforms like DraftKings, Fanatics, and FanDuel chose to impose direct surcharges on each wager instead. By September, FanDuel and DraftKings had already crossed the 20 million-bet threshold and began incurring the higher 50-cent fee, prompting both companies to pass it along to customers. FanDuel charged users 50 cents per bet beginning September 1st, while DraftKings applied various other surcharges. Other platforms, including bet365 and Caesars, announced similar plans, although not all had implemented them by late September.
Per the same article, despite the sharp decline in total bets, the amount of money wagered – referred to as handle – continued to rise. IGB data shows online tier-one handle reached $434.5 million in September, up from $416.8 million the prior year, while tier-two handled grew from $676.7 million in 2024 to $782 million in 2025. As Flutter CEO Peter Jackson summarized on a recent earnings call, “As you would expect, we are seeing a reduction in the number of bets there, but increasing handle per bet.” Also, despite industry pushback, the state’s new tax regime has produced meaningful short-term revenue gains. Illinois collected more than $10.5 million from the power-wager tax in September alone and more than $21 million in the first quarter of the fiscal year. However, other sources argue that these gains may not be sustainable.
After you are all up to speed in relation to the latest gambling news coming from Illinois, make sure to check out the excellent array of info available to you at SBS. Of course, for even more info on the topic in this report, the sports betting in Illinois guide is a fantastic page that goes over all of the latest updates coming from the region. Moreover, for those interested in a gaming outlet, the BetOnline sportsbook review rundown is an excellent resource that covers all of the newest contests and bonuses coming from the outlet, and if you are eligible and qualify. Finally, for those interested in maximizing their wagers, the best bonus betting sites breakdown is a must-read page. Here you can find a catalogue of the latest and greatest welcome bonus offers available to you.
About the Author
Chris Boline is a Reno-based business development professional and freelance sports writer with over a decade of experience covering the NBA G League, Los Angeles Chargers, and national football and basketball. His expertise spans the NFL, NBA, UFC, boxing, golf, and motorsports, along with topical news, marketing, and promotional content. A proud University of Nevada graduate, Chris earned both his BS in Management & Economics (2015) and MBA (2023). He is active in the Reno community, serving on boards such as the Nevada Sagebrush Alumni Chapter, NCET, and the College of Business Alumni Association, where he was past president (2022–23). Notable honors include: - Two-time University of Nevada Alumni Chapter of the Year honoree (2017, 2021) - 2021 NCET Professional Services Organization of the Year (with TAC) - 2016–17 Reno Bighorns MVP, awarded by the Sacramento Kings - Nevada Press Association Award for Best Sports Column (2015) - Former Editor-in-Chief of The Nevada Sagebrush Chris blends his passion for sports with a strong background in sales, marketing, and community engagement.
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