Illinois Sports Betting Declines Amid Per-Bet Tax

Despite nationwide record wagered on Super Bowl LX, Illinois sports betting appears to be trending down due to a per-bet fee.

Published on Feb. 9, 2026

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Despite a nationwide record $1.76 billion wagered on Super Bowl LX, Illinois sports betting appears to be trending down amid a per-bet fee imposed by the state. The Illinois Gaming Board reports three consecutive months of 15% declines in the amount of bets placed, which industry experts attribute to the $0.25 to $0.50 fee on each online wager. This has led major platforms like DraftKings and FanDuel to add $0.50 surcharges for bets placed in Illinois, causing some bettors to wager less or seek out illegal markets.

Why it matters

The decline in Illinois sports betting could have significant implications for the state's tax revenue and the overall growth of the legal sports betting industry. The per-bet fee appears to be driving bettors away from legal platforms and back to illegal markets, undermining the goals of sports betting legalization.

The details

Illinois imposes a $0.25 to $0.50 fee on each online sports wager, which has led major sportsbook operators to add $0.50 surcharges for bets placed in the state. This has caused a noticeable decline in the amount of bets placed, with the Illinois Gaming Board reporting three consecutive months of 15% decreases. Industry experts warn that the fee could turn bettors back to illegal markets and cause people in border communities to take their money across state lines.

  • The per-bet tax was enacted in Illinois in July 2025.
  • The Illinois Gaming Board has reported three consecutive months of 15% declines in the amount of bets placed since the tax was implemented.

The players

Illinois Gaming Board

The state regulatory agency that oversees the Illinois sports betting industry.

Sports Betting Alliance

An industry group representing several major sportsbook operators.

Antoine Smith

A sports bettor in Illinois who has reduced his betting activity due to the per-bet tax.

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What they’re saying

“The state of Illinois is showing three consecutive months of 15% declines in the amount of bets. That's very, very telling, and it is something that is not happening anywhere else in the country that has online sports wagering.”

— Joe Maloney, President, Sports Betting Alliance (abc7chicago.com)

“I bet less than I used to because of this. With it being more about volume, or the tax on the volume of betting, as opposed to winning, it's definitely made me slow down a little bit more.”

— Antoine Smith, Sports bettor (abc7chicago.com)

What’s next

The Illinois state government may need to re-evaluate the per-bet tax and its impact on the sports betting industry in the state. Adjustments to the tax structure could help attract more bettors to legal platforms and generate more tax revenue for the state.

The takeaway

The decline in Illinois sports betting due to a per-bet tax highlights the delicate balance between generating tax revenue and maintaining a thriving legal sports betting market. Policymakers will need to carefully consider the unintended consequences of such taxes and work to find a solution that benefits both the state and sports bettors.