With the biggest sports betting operators reportedly threatening to leave the state over the latest proposed tax-increase plan, the Illinois general assembly adjourned for the weekend at about 10pm local time on Saturday (25 May). It plans to reconvene and continue work on the budget “next week”.
The latest budget proposal on Saturday afternoon included a graduated wagering tax structure that would set rates between 20% and 40%, depending on an operator’s adjusted gaming revenue (AGR).
Those with AGR of $30m per year or less would be taxed at 20% while those with AGR of $200m or more would be taxed at 40%.
Here’s a look at the proposed breakdown:
20% tax on AGR up to $30m
25% on AGR of revenue between $30m-$50m
30% on AGR of revenue between $50m-$100m
35% on AGR of revenue between $100m-$200m
40% on AGR of revenue over $200m
Top operators would see taxes nearly triple
Companies like DraftKings and FanDuel, the biggest operators in Illinois, would easily fall into the 40% tax ..