By
Amelia Walker
Senior Content Writer Updated: 17 June 2024
Amelia Walker Senior Content Writer
Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.
It has been reported that two major sports betting operators have voiced concerns over the sports betting tax hike that was approved by Illinois Governor J.B. Pritzker. FanDuel and DraftKings are said to be among the operators that have opposed the tax hike, and there has even been talk of them abandoning Illinois as a result of the changes in the sports betting tax rate.
The sports betting industry in the state is said to be worth around $1 billion, and the governor said that the state should have a right to a larger share of this money.
He has defended the move to increase the sports betting tax rate from 15 percent to up to 40 percent, which will have a huge impact on operators in Illinois. There has been a lot of debate about whether the tax increase is fair and about various operators leaving the state.
Jeremy Kudon from the Sports Betting Alliance said that the tax hike could have a huge negative impact on operators in Illinois in terms of investments and even jobs. He said:
This tax hike doesn’t just threaten the legal, regulated sports betting market — it will have devastating effects for operators’ in-state partners, including the most vulnerable downstate casinos, who rely on sports betting revenue to create jobs and invest in communities.
However, amid threats of operators leaving the state due to the tax hike, Victor Matheson, an economics professor at the College of the Holy Cross, accused operators of bluffing. He said that given the amount of profits major sports betting companies had made, it was only right that they gave a bigger share to bolster state finances.
The Illinois General Assembly has approved a tax system that is graduated, and this shocked operators in the industry. The highest 40 percent taxation rate will be applied to earnings that exceed $200 million. This means that the two operators that are most affected are FanDuel and DraftKings, both of which broke the $100 million barrier last year.
Despite the controversy and threats from sports betting operators in the state, Pritzker is standing firm on his decision, according to reports. He has justified the graduated taxation system, stating that it is vital to ensure sports betting corporations are fairly contributing to the state.
The decision to increase taxes and bring in the graduated taxation system formed part of the governor’s overall budget plan. However, it did not receive unanimous support, as it was reported that a number of Republican and Democrat lawmakers opposed the decision.
Many were concerned about how the tax hike would affect the sports betting industry in Illinois, and these are concerns that have been mirrored by sports betting operators, particularly the two major operators in the state.
Officials and sports fans in Illinois are now likely to be keeping a close eye on the industry to see whether sports betting operators follow through on their threats to leave.
Betsson to Shut Down Betsafe App in Colorado by September 2024Read Article
Blake RobertsSeptember 16, 2024
Atlantic City Workers Take Their Appeal to Ban Smoking in Casinos to High CourtRead ArticleAmelia WalkerSeptember 13, 2024
Bet365 Fined $33,000 For Taking Wagers After Outcomes Were KnownRead ArticleBlake RobertsSeptember 11, 2024