In a surprising turn of events, Illinois lawmakers have recently approved a substantial tax hike on sports betting that has left many in the gaming industry questioning what implications this may have on the potential legalization of online casinos in the state.
The tax increase, which was passed as part of the state’s budget agreement, will see sports betting operators now paying a whopping 17% tax on their gross revenue, up from just 15%. This move comes as a shock to many industry insiders, as Illinois was already known for having one of the highest tax rates on sports betting in the country.
With this tax hike in place, it raises concerns about whether or not the state will be able to attract the necessary revenue to support the expansion of online casino gaming. Many fear that the high tax rate will deter potential operators from entering the market, or drive existing operators to look elsewhere for more favorable conditions.
The timing of this tax increase is particularly unfortunate, as there had been high hopes that online casino legislation would be pushed through this year. Several bills have been circulating in the state legislature that would legalize and regulate online casino gaming, with supporters arguing that it could bring in much-needed revenue for the state.
However, with the new tax hike in place, it remains unclear whether these efforts will be successful. The fear is that operators may be put off by the high tax rate, potentially derailing the legalization process altogether.
Some lawmakers have tried to assuage these concerns by pointing out that online casino gaming could still prove profitable, even with the higher tax rate. They argue that the tax hike on sports betting was necessary to help make up for revenue shortfalls caused by the COVID-19 pandemic, and that online casino gaming could help to offset these losses.
Despite these reassurances, many in the industry remain skeptical. They worry that the tax hike will make Illinois an unattractive market for potential online casino operators, and that the state may miss out on a valuable source of revenue as a result.
Ultimately, only time will tell what impact the sports betting tax hike will have on the chances of online casino legalization in Illinois. For now, industry insiders are watching closely to see how things unfold, and hoping for a positive outcome for the future of gaming in the state.
