Illinois’ sports wagering sector saw a notable downturn in September, the first full month under the state’s newly implemented per-wager tax. Data from the Illinois Gaming Board shows that betting volume fell 15% from September 2024, with the total number of wagers dropping by approximately 5 million year over year.
Operators Highlight a Break from National Growth
September typically delivers strong sportsbook activity thanks to NFL and college football openings and baseball’s postseason push. But industry observers say this year’s dip signals a shift caused by state tax policy. Sports Betting Alliance spokesperson Maura Possley told The Center Square, “It shows that bets plunged in Illinois after the law was put in place and is a red flag that Illinois sports fans are fleeing the legal betting market in favor of the cheaper, illegal market.”
In a separate SBA statement, she added, “The Illinois Gaming Board data released today is astounding. While legal markets all across the country are growing, the Illinois market is shrinking thanks to the state’s recent tax hike.”
The SBA — representing DraftKings, FanDuel, BetMGM, Fanatics Sportsbook, and bet365 — emphasized that September provided the clearest look yet at the tax’s impact, as it was the first full month since the July rollout of surcharges and betting minimums.
New Per-Wager Charges Shift Costs to Bettors
The tax was part of a $55.2 billion budget approved last spring, which included more than $480 million in total tax increases. Under the new law, operators owe 25 cents per online wager up to 20 million bets, and 50 cents per wager beyond that threshold. Sportsbooks are permitted to pass these costs to players, and most have done so.
DraftKings and FanDuel have added 50-cent surcharges to individual bets, though DraftKings excludes parlays of $10 or more. BetMGM, Hard Rock Bet, and others have introduced minimum wagering requirements, while Circa Sports currently sets the highest minimum at $10. According to the SBA, these added costs are steering bettors toward unregulated offshore or sweepstakes-style platforms.
Possley warned, “Illinois sports fans are fleeing the legal betting market in favor of the cheaper illegal and unregulated options – and the regulated legal market is paying the price.”
Her concerns echo those of state regulators. Illinois Attorney General Kwame Raoul and several counterparts nationwide urged the U.S. Department of Justice to address illegal online gambling, warning that it exposes consumers to “fraudulent schemes and highly addictive gambling without any oversight or accountability.” The Better Business Bureau has also reported that the “risky underbelly of pseudo-gambling, illegal gambling and scams” produced 10,000 complaints between 2022 and 2025.
Additional pressure may soon reach Chicago bettors. Mayor Brandon Johnson has proposed a 10.25% city wagering tax aimed at raising $26 million as part of the city’s $16.6-billion budget plan. The SBA argues the measure would accelerate the shift toward unregulated platforms.
Combined with Illinois’ progressive tax system, the per-wager levy has become one of the nation’s heaviest burdens on operators. The tax generated $10.6 million in September, during which online sportsbooks produced nearly $99 million in adjusted revenue.
Source:
“Illinois sports wagers decline after implementation of new tax”, thecentersquare.com. November 15, 2025
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