Illinois’s New Progressive Tax Rate on Sports Betting Approved by Legislature
May 31, 2024
The Illinois legislature approved a new progressive tax rate for sports betting operators as part of the state’s budget. The Governor is expected to sign the bill.
As we reported last week, the legislature ultimately settled on a progressive tax rate which imposes a higher tax rate when higher revenue thresholds are met.
The structure is:
- First $30 million in adjusted revenue taxed at: 20%
- Revenue between $30-$50 million: 25%
- Revenue between $50 million and $100 million: 30%
- Revenue $100 million to $200 million: 35%
- Revenue above $200 million: 40%
The new budget also imposes a slightly higher tax on VLT operators, which was an unexpected addition to the budget.