Illinois recorded a sharp decline in legal sports betting activity following the introduction of a per-wager tax, according to figures released by the Illinois Gaming Board. The data shows a noticeable reduction in the number of bets placed since the levy took effect in September last year, raising questions about player behavior and the broader impact on state revenue.
In September, Illinois began charging sportsbooks $0.25 on each of their first 20 million wagers, with the fee increasing to $0.50 for every bet beyond that limit. Major operators responded by shifting the cost directly to customers, applying a flat $0.50 charge per wager across their platforms.
Betting Volumes Fall After Fee Rollout
The effect of the policy became apparent in year-over-year comparisons. September 2025 recorded roughly five million fewer wagers than September 2024, representing a decrease of about 15%. The downward pattern continued into the following month. In October 2025, bettors placed 6.4 million fewer wagers compared with October 2024, based on gaming board data cited in recent reporting.
Joe Maloney, president of the Sports Betting Alliance, expressed surprise at the scale of the decline. “Mostly because this is the only jurisdiction across all 30 states with online sports betting where this is actually happening,” Maloney said.
While the total number of legal wagers has dropped, Maloney said the data does not necessarily suggest that players have stopped betting. Instead, he warned that many may have shifted their activity to unregulated platforms that do not impose the same costs.
Shift Toward Unregulated Markets Raises Concerns
Maloney pointed to pricing sensitivity among bettors as a key factor influencing behavior. “Any bettor with any level of sophistication is really paying attention to their costs, right?”Maloney said. “So, when you have the ability to have multiple competitive entrants in the legal regulated marketplace and then a myriad number of options in illegal or unregulated sites, you’re going to go for that best price.”
Industry groups have linked the decline in wagering directly to the added fee, arguing that it has made Illinois one of the more expensive states for placing legal sports bets. Analysts have noted that higher costs can push consumers toward illegal services that operate without oversight.
The move toward unregulated betting carries risks for players, including the absence of safeguards that exist in licensed markets. Maloney said consumer protection played a central role in the original decision to legalize sports gambling. “It was to protect consumers that were already doing this illegally,” Maloney said. “Bring them into transparent marketplaces where there are consumer protections, where there’s recourse.”
Revenue Goals Under Pressure
State officials have not publicly commented on the latest figures, though the tax was designed in part to increase revenue. Maloney cautioned that declining participation could undermine that goal. “Once the consumers flee this market, there’s no additional tax revenue to go to these important priorities that the state is clearly working on,” he said.
As Illinois reviews the impact of the wager tax, the latest data highlights the challenge of balancing revenue generation with maintaining a competitive legal betting market.
Source:
“Illinois sports betting plummets after tax implementation”, 25newsnow.com, January 20, 2026
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