Illinois sports fans have been eagerly placing their bets on popular platforms like FanDuel and DraftKings in recent years, but a new tax hike proposed under Governor J.B. Pritzker’s budget plan is set to hit these companies hard. The proposed increase in sports betting taxes has caused concern among industry leaders and fervent sports bettors alike.
According to the budget proposal, the tax rate on sports betting revenue would jump from 15% to 25%, a substantial increase that could significantly impact the profits of companies like FanDuel and DraftKings. These platforms have become hugely popular in Illinois, with thousands of users placing bets on a wide range of sports events every day.
Industry experts have warned that the tax hike could have a detrimental effect on the overall sports betting market in Illinois. Higher taxes could lead to reduced payouts for bettors, lower revenue for companies, and even drive some users to seek out illegal betting options instead.
In response to the proposed tax hike, both FanDuel and DraftKings have expressed their concerns and are actively lobbying against the increase. They argue that the higher tax rate would make it difficult for them to compete with other states that have lower rates, ultimately harming the Illinois sports betting industry as a whole.
Sports fans in Illinois are also voicing their displeasure with the proposed tax hike, with many expressing their concerns that the increase could make sports betting less accessible and less enjoyable for the average bettor. Some have even threatened to take their business to other states with more favorable tax rates if the proposal goes through.
Governor Pritzker’s budget plan is still in the early stages of approval, with negotiations ongoing between lawmakers and industry stakeholders. While it remains to be seen how the tax hike will ultimately impact sports betting in Illinois, one thing is clear – the future of the industry hangs in the balance as stakeholders continue to push back against the proposed increase.
