Illinois Senate passes progressive sports betting tax
The proposal would introduce a progressive rate up to 40 per cent.
US.- The Illinois Senate has passed a bill that would introduce a new method for calculating sports betting taxation from July 1. The state would move to a progressive tax rate on operator revenue.
HB 4951 passed 37-22, with one key amendment added from Saturday’s original proposal. While mobile and retail adjusted gross sports betting revenue (AGR) would be taxed at the same progressive rates, they would be taxed as separate entities.
The first $30m in AGR would be taxed at 20 per cent; the next $20m at 25 per cent; revenue from $50m to $100m would be taxed at 30 per cent; from $100m to $200m at 35 per cent and all revenue above $200m at 40 per cent.
See also: Massachusetts Senate rejects proposed sports betting tax hike
The top rate would be the second highest among US states with competitive markets after New York (51 per cent). The Sports Betting Alliance (SBA) called the budget an “extremely disappointing decision that will cause real harm.” The bill now heads to the House and will then go to Illinois governor JB Pritzker’s desk for his signature should it pass.
