Illinois generated more than $56 million in sports betting tax revenue during October, driven primarily by the state’s largest online sportsbooks, FanDuel and DraftKings. Data from the Illinois Gaming Board (IGB) shows that the 10 licensed operators handled a record $1.6 billion in sports wagers for the month, marking an 11% increase compared with October 2024. The surge produced $135.0 million in adjusted gross revenue (AGR).
Despite the overall growth in revenue, the total number of wagers decreased. In October, Illinois bettors placed over six million fewer wagers than the same month last year, a decline of roughly 16%. This trend, which began in September, indicates that while residents are betting less frequently, the amount staked per wager has increased.
Progressive Tax Brackets Impact Major Operators
Illinois revised its online sportsbook tax structure in mid-2024, moving from a flat 15% AGR rate to a progressive system that starts at 20% and climbs to 40%. FanDuel and DraftKings have each exceeded $150 million in revenue for the fiscal year beginning July 1, which places them in the 35% AGR bracket. Once their revenue surpasses $200 million, the rate rises to 40% for the remainder of the fiscal year. Other operators, such as Fanatics Sportsbook, have moved into the 25% bracket, while the rest of the state’s sportsbooks remain at 20%. Overall, AGR taxes alone generated $41.5 million for Illinois in October.
Per-Wager Fees Add to Tax Burden
In addition to the progressive AGR tax, FanDuel and DraftKings are subject to the higher per-wager charge of 50 cents for each bet placed, following the surpassing of 20 million digital wagers since July 1. Previously, the state charged 25 cents per wager up to that threshold. Across all 10 operators, this per-wager tax contributed $14.7 million in October, with FanDuel and DraftKings accounting for $12.4 million, or 84.5% of the total. Combined, AGR and per-wager taxes brought Illinois’ total sports betting tax revenue for the month to more than $56.1 million.
Since the per-wager tax went into effect on July 1, Illinois has collected $35.3 million from the levy, with FanDuel and DraftKings contributing nearly $29 million. Five of the state’s sportsbooks, including the two largest, have passed these fees directly onto Illinois customers, while others have adjusted minimum bet amounts, which may explain the reduction in total wagers alongside rising wager amounts.
Local Taxes Add Pressure
Illinois sportsbooks also face additional levies at the county and city level. Cook County imposes a 2% tax on all wagers, generating over $68 million in revenue for the county in October and roughly $1.4 million in tax receipts. Chicago may introduce a further 10.25% tax on sportsbook revenue from bets placed within city limits. Estimates suggest that based on October activity, the city could have collected more than $2.8 million. Proposed legislation and letters from industry representatives indicate opposition to the plan, citing potential licensing issues that could force operators to suspend online wagering in the city starting January 1.
Source:
“Illinois made $56M in sports betting tax revenue in October alone”, sbcamericas.com, December 23, 2025
The post Illinois Sports Betting Tax Revenue Hits $56M in October first appeared on RealMoneyAction.com.