The Illinois State Senate passed a bill proposing higher taxes on online sports betting operations, with tax rates ranging from 20% to 40% based on annual revenue, up from the previous 15%. This tax increase has led to a drop in stock prices for companies like DraftKings and Flutter Entertainment. Analysts believe the tax hike in Illinois may have implications for the broader online gambling industry, potentially affecting profitability and market dynamics. The bill, with all amendments in place, has passed both houses and is awaiting approval from Governor JB Pritzker.
Major online oddsmakers like FanDuel and DraftKings say they have to “reevaluate” their Illinois operations with a hefty tax increase on the way. Gov. J.B. Pritzker says the state is getting its fair share from the billion-dollar industry. https://t.co/KrbQfHg1ae
Today's feature column looks at the story of the week: Illinois increasing its sports betting tax rate... How we got here, what happened, and what comes next. Also some thoughts on the winners and losers (some bigger than others). Read and subscribe: https://t.co/8hlv3AUsbM https://t.co/XfVb8JvY1c
Illinois has more than doubled its peak tax rate on sportsbook operators—and other states are likely to follow. More betting volume across the U.S. is giving governments more latitude, writes @AEricFisher ⬇️
At 40%, Illinois would become the highest-taxing state in the country for sports betting operator revenues outside of those states which used competitive bidding and granted market exclusivity. The 51% rate in NY, NH, and RI resulted from competitive bidding, not legislation. https://t.co/NLFTc5Zgag
At 40%, Illinois would become the highest-taxing state in the country for sports betting operator revenues outside of those states which used competitive bidding and granted market exclusivity. The 51% rate in NY, NH, and RI result from competitive bidding, not legislation. https://t.co/NLFTc5Zgag
Top 10 U.S. states in sports betting $$ wagered in April 2024 (of states reporting so far): 1. New York: $1.97B 2. New Jersey: $1.04B 3. North Carolina: $649M 4. PA: $646M 5. MA: $603M 6. Nevada: $569M 7. Maryland: $486M 8. Michigan: $414.4M 9. Indiana: $394M 10. TN: $381M
In the early hours of Wednesday morning (29 May), the Illinois House of Representatives passed proposals to increase the gambling tax rate in the state. https://t.co/9JjwxA0M6N
I'm sure this bill will make things much better for sports betting consumers in Illinois. There won't be any unintended consequences -- or maybe these are intended consequences -- of further limiting competition or poor pricing or anything like that. No, never. That wouldn't… https://t.co/fDTAfLbpZ3 https://t.co/4qIrI9aTKk
It's not just the tax rate in Illinois, states are modifying deals they've made with gambling operators. In today's newsletter, I look at the Illinois House and Senate sending the new graduated tax rate to the Gov.; Delaware possibly rescinding the exclusivity deal it signed… https://t.co/wnVuCFvKve
Progressive sports betting tax bill (20% to 40%) passed both houses in Illinois this morning.
A bill to increase Illinois' sports betting tax rate is headed to Governor JB Pritzker's desk after a dramatic early morning in the state's House of Representatives. @AlTruda73 breaks down the bill and the political theatrics. https://t.co/xJxKNToGZI
HB 4951 comes out of the Finance/Revenue committee with all amendments in place (including the progressive #SportsBetting tax rate) by a 12-7 vote. It now heads to the House Floor. #twill #Illinois #SportsBettingX #GamblingX
“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
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
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
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