An Illinois lawmaker has proposed a progressive sports betting tax rate as an alternative to Gov. JB Pritzker's proposed increase to 35% for the upcoming fiscal year beginning July 1.
The minimum tax rate as part of HB 4951 is 20%, an increase from the current 15% rate at all levels of operator adjusted gross revenue. The threshold increases to 25% at $30 million in adjusted gross revenue; 30% over $50 million; 35% over $100 million; and 40% over $200 million.
Of the eight mobile sports betting operators currently in Illinois, only FanDuel ($429.3 million) and DraftKings ($350 million) would reach that maximum 40% threshold based on their last 12 months of winnings.
BetRivers ($81.1 million) and Fanatics Sportsbook ($51.7 million) are the only other operators that would cross into the 30% threshold, but ESPN BET likely would reach that benchmark as well in a full 12-month span.