The Illinois Senate has approved a significant tax hike on sports betting operators, with the new tax structure outlined in HB 4951. The progressive tax rate will range from 20% to 40% depending on annual gross revenue (AGR), up from the current rate of 15%. This decision has caused shares of major sports betting companies like DraftKings and FanDuel's parent company, Flutter Entertainment, to drop significantly. DraftKings' stock fell by as much as 12% following the news. The new tax rates will take effect on July 1st. Lawmakers have proposed this increase as a means to boost state revenue, with funds to be shared between the capital and general revenue funds. Additionally, an extra 1% tax on video gaming terminals has been included in the bill. The Illinois Senate's decision has sparked concerns among investors about the potential spread of similar tax hikes to other states. FanDuel, which paid $62M in tax in 2023, would have paid approximately $145M under the new structure. The bill passed with a 37-22 vote on May 26th.
“I don’t worry so much on the tax increases on gaming, you know, who’s going to cry crocodile tears,” says former Ohio governor @JohnKasich on Illinois voting to raise taxes on sports betting. “What you wonder about is what the state is going to do with the extra revenue.” https://t.co/BiL04PLIzF
Illinois is working to hike taxes on sports betting and gaming stocks are taking a hit. @contessabrewer reports. $FLUT $DKNG https://t.co/INUc2fb8nA
“This is a huge industry… America has an appetite for gaming,” says @DonnaFEdwards after Illinois senators passed a tax increase on sports betting operators. “I think the states are understandably looking to get a piece of that.” https://t.co/dRu69QLUR8
You can't tell your #SportsBetting progressive tax rates without a scorecard! (re: HB 4951) #twill https://t.co/IS7eZyo8Q0
Bad news for $DKNG as Illinois proposes a 140% tax on sports betting! This could drive users back to illegal bookies and hurt DraftKings' bottom line. Analysts still rate it a buy, but will it be enough to offset the potential losses? @jonnajarian @MXLESQ on Rebel's Edge 🏴☠️ 1pm… https://t.co/qXtvUd3amx
My biannual reminder that I have an idea for a game that @FanDuel and @Draftkings could start marketing if they get tired of states increasing the tax rate 140% on sports betting. Would require limited technical development on their part and already has a lower-tax regulatory… https://t.co/x1RBYXvwqj
Shares of DraftKings and FanDuel parent company Flutter Entertainment are down after the upper chamber of the Illinois legislature agreed to raise taxes on sports betting https://t.co/kju9FboNBs
$DKNG and $FLUT down double digits on a new, progressive online sports betting tax in Illinois, which "creates incremental uncertainty" for U.S. online gambling profitability. https://t.co/TM0BAm5m11
DraftKings Stock Hobbles To Worst Day Since 2022 On Illinois Tax Fears https://t.co/YjbZ04OLQV https://t.co/A113qb8grJ
The Illinois State Senate passed a bill on Sunday proposing higher taxes on online sports betting operations Under the new proposal, online sportsbooks will begin paying higher taxes on July 1st, ranging from 20%-40% depending on annual revenue up from the 15% the sportsbooks…
Analysts indicate Illinois sportsbook tax hike not a huge deal, but investors worry it’ll spread to other states https://t.co/TsLa587VCG
$DKNG -13%, $FLUT -7% on daily lows & definitely full of action today after the Illinois Senate progressive sports betting tax hike on May 26th, that would levy a 40% rate on operators with the highest adjusted gross revenue. -Analysts from BTIG, OPCO, DBK, MS & Wells all have…
Be Better, Illinois? @MonocleMan1 @RowlandKristan1 DraftKings' premarket selloff echoes reasonable concern that the Illinois Senate's passage of a sportsbet tax-rate rate increase --
$DKNG IL sports gambling tax will go nationwide. Sports betting takes away from the state lottery so govnt officials will get their pound of flesh. The problem is DKNG et al aren’t fully of govnt employees so it’s antagonistic rather than congenial.
DraftKings and Flutter fell after the Illinois Senate passed legislation that would raise taxes on sports betting https://t.co/fIabwsZwrZ
DraftKings, $DKNG is down 12% after Illinois Senate has approved a progressive sports betting tax hike. You can see that traders took $DKNG new bearish positions May 23rd beforehand. We highlighted it both on Twitter/X and the UW Discord. Come learn the tools! https://t.co/DKoSZyTGHK https://t.co/Gp7nNC6f7W
$DKNG Kaboom! 🔻-9% in pre-mkt Left - My message to clients on March 28 with stock at $46/share: Liquidate full position, big risk of states tax hike that will hurt EBITDA. Right - News yesterday IL Senate voted 37-22 to increase progressive sports betting tax from 15% to 40%. https://t.co/I9SBGQXTzJ
$DKNG DRAFTKINGS IS DOWN 7% BECAUSE ILLINOIS WANTS TO DOUBLE THE TAX RATE FROM SPORTS BETTING COMPANIES 🥶🥶🥶🥶🥶 https://t.co/hTx79FFs2o
$DKNG $FLUT shares are trading lower after the Illinois Senate approved a 2025 budget imposing a progressive tax increase on sports betting operators. The new tax structure will impose a 40% tax rate on operators with the highest AGR, nearly 3x the current rate and making it the… https://t.co/pyLTV53OFM https://t.co/1YvMy8PqWg
$DKNG $FLUT | ILLINOIS SENATE APPROVES PROGRESSIVE SPORTS BETTING TAX HIKE The Illinois Senate has approved a budget for 2025 that includes a progressive tax increase on sports betting operators. The new tax structure, outlined in HB 4951, will impose a 40% tax rate on…
re $DKNG from Wells Fargo "Illinois Advances Bill to Increase Tax on Sports Betting AGR; FanDuel $FLUT and $DKNG to Bear Brunt of Increase" llinois' senate passed a bill for a large increase to sports betting tax rates. Under the Senate’s approved HB4951 bill, tax rates on…
In today's newsletter, I look at the unfolding situation in Illinois, which has gone from bad to worse if you're at the top of the sports betting food chain. The state is close to passing a new graduated tax that tops out at 40%. Suffice it to say that things are starting to get… https://t.co/daY2qIPSdC
Illinois Senate passes huge tax hike for #sportsbetting - bill now headed to the House for concurrence. @SBAllianceUS calls this an “extremely disappointing decision that will cause real harm.” https://t.co/RLTkfrzn7O
A tiered tax approach is one of several reasonable ways to ensure that tax increases don’t have the unintended consequence of decreasing competition in Illinois’ online sports betting market. https://t.co/rZRC38Z0af
Think a 35% #sportsbetting tax rate in Illinois is bad? Lawmakers have upped the ante in budget discussions. https://t.co/DHpjsyW6ug
Waiting to find out what happens with the proposed Illinois sports betting tax increase? Check out my podcast episode with Chris "The Steve Kornacki of Gaming Revenue" Altruda. Chris and I cover the IL tax increase and a whole lot more in this episode. https://t.co/1JJwyi04s7 https://t.co/EEBso3SRqM
While you're waiting to find out what happens with the proposed Illinois sports betting tax increase, might i recommend my recent podcast episode with Illinois journalist Chris "The Steve Kornacki of Gaming Revenue" Altruda. Chris and I cover the tax increase and a whole lot… https://t.co/tdbfwOCfEc
Welcome to #SportsBetting Fight Club, #Illinois style. A progressive tax rate has been proposed as an alternative to Gov. Pritzker’s call for a raise to 35% https://t.co/9axm8C3aw8 #SportsBettingX #GamblingX
There are nine sportsbooks, including DraftKings and FanDuel, that operate in New York, where the tax is 51%. Under this proposal, Illinois’ would top out at 40%. #twill https://t.co/7javb6Kvbj
FanDuel paid ~$62M in tax throughout 2023 on $411M revenue, tops in IL. They would’ve paid something like $145M under this structure, by my shoddy math. https://t.co/h2IPkJibKc
Latest revenue bill: IL sports betting tax would be structured at a graduated rate ranging from 20% to 40% depending on AGR (1st screenshot). Revenues would be shared between capital and general revenue fund (2nd screenshot). Also, an extra 1% tax on video gaming terminals (3rd) https://t.co/aUGSD1XwWk
Proposed sports betting tax hikes are quickly becoming the latest trend, and Illinois lawmakers continue to wrangle over the issue. https://t.co/apOrCbdgwr