Illinois 40% sports betting tax enters law

Illinois 40% sports betting tax enters law

Governor JB Pritzker has signed the state’s budget package.

US.- Illinois governor J.B. Pritzker has signed the state’s spending plan for the coming year, which includes changes to the state’s sports betting tax rate.

HB 4951 passed the state House and Senate last week, with one key amendment added from the original proposal. Mobile and retail adjusted gross sports betting revenue (AGR) will be taxed at progressive rates as separate entities. The first $30m will be taxed at 20 per cent; the next $20m at 25 per cent; revenue from $50m to $100m at 30 per cent; from $100m to $200m at 35 per cent and all revenue above $200m at 40 per cent.

The top rate is the second highest among US states with competitive markets after New York (51 per cent). The bill passed despite opposition from the Sports Betting Alliance, which represents mobile operators FanDuel, DraftKings, BetMGM, and Fanatics Sportsbook.

SBA president Jeremy Kudon said: “Rather than heeding the outcry from tens of thousands of residents who vocally opposed more than doubling sports betting taxes, the Illinois Senate advanced a budget tonight that would make Illinois sports betting tax the second highest in the country and counter-productively penalises sports betting operators who invested millions into the local economy and created jobs in the state.”

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