Governor J.B. Pritzker presented a $52.7 billion state budget in February that sought to address a number of challenges and provide financing for important projects including economic infrastructure and education. However, a crucial change is concealed in the plan: a proposal to raise betting taxes.
Currently, Illinois imposes a 15% tax on mobile betting revenue and a varying rate of 15% to 17% on land-based operators, relatively moderate compared to other states. For instance, New York levies a whopping 51% tax on mobile betting operators. However, Gov. Pritzker’s budget blueprint suggests a substantial uptick in the betting revenue tax, from 15% to 35%, projecting an additional $200 million in tax revenue.
Naturally, certain stakeholders are not in favor of this proposal. A well-known sportsbook and casino, FanDuel, recently advised its Illinois clientele to oppose the tax increase. A screenshot that Illinois was able to collect shows a message from the sportsbook asking customers to object to the rise. Customers are urged to sign a petition opposing the tax increase and to contact state officials and Governor Pritzker, highlighting the possible effects on entertainment alternatives.
Amy Howe, CEO of FanDuel, emphasized the importance of striking a balance in tax rate adjustments in an interview with LSR. While acknowledging the significance of state revenue, Howe cautioned against overburdening operators, which could stifle competition and drive consumers towards unregulated markets. She stressed the necessity for policymakers to navigate tax increases judiciously to avoid unintended repercussions detrimental to both the state and consumers.