In a bold fiscal move, Governor J.B. Pritzker has set his sights on a heftier slice of Illinois' burgeoning sports betting revenue. Proposing a dramatic surge from the current 15% tax to a 35% levy on sportsbook profits, Pritzker is positioning the state to bolster its coffers by an estimated additional $200 million annually. This uptick, if passed, would shuttle the extra funds into the state's strained treasury, as reported by the Chicago Sun-Times.
The proposal, tucked not so discreetly into the fiscal year 2025 budget, has been underscored by Pritzker's office as a just adjustment. Press secretary Alex Gough emphasized, "From Day One, Gov. Pritzker has taken action to ensure corporations are paying their fair share." He laid bare the profits of the thriving industry; Illinois sportsbooks took in over $1 billion last year, as detailed by the Daily Herald. The industry's peak last December alone funneled over $19.2 million into state tax revenues.
While this potential revamp aims to ease the state's financial worries, it has sparked a counterpoint from industry powerhouses like FanDuel and DraftKings, alongside tax policy experts. Adam Hoffer of the Tax Foundation warned that the hike could lead to worse odds for bettors and quell the budding competitiveness within the industry. Amid these concerns, states such as New York and Pennsylvania already impose higher rates – a precedent suggesting the industry may withstand such fiscal pressures, according to gaming industry consulting firm president Alan Woinski.
Yet, the opposition, consolidated under the banner of the Sports Betting Alliance, voiced apprehensions that the increase could give illegal offshore sports operators a competitive edge, disadvantaging "law-abiding sportsbooks," as the spokesman Nathan Click framed it to the Chicago Sun-Times.
Despite contention, Pritzker's administration stayed firm on the proposal proudly dressed in the garb of fiscal responsibility. But as the state legislature prepares to deliberate the budget by May's end, the forthcoming decision on this potential increase in sports bettgoving tax remains, for the present, a question mark on Illinois' legislative docket.
