CHICAGO (CBS) — There’s a battle brewing over sports betting in Illinois.
On one hand, Governor JB Pritzker is trying to more than double the tax on winning bets. On the other hand, the gambling companies are now asking their customers to join in to stop this.
Companies like DraftKings, FanDuel, and BetMGM have all come together to form the Sports Betting Alliance. Competitors are united against Pritzker’s proposed tax increase, which he says would raise an additional $200 million for the state.
Sports betting has obviously become extremely popular since it was legalized with the passage of the Illinois Sports Wagering Act in 2019. the first legal bet was placed the following year. Abbey Sowacke and Charles Cook each consider themselves casual online s[sportsbetters[sportsbetters[sportbetters[sportsbetters
“It makes games a little more exciting,” Cook said.
CBS 2 met Sowacke and Cook outside the DraftKings sportsbook at Wrigley Field. They were likely among the online gamblers who have received messages from sports betting companies, for example, urging them to write to Illinois lawmakers and oppose the governor’s proposed tax increase.
Currently, Illinois sportsbooks pay a 15% tax on their revenue. But Pritzker’s latest budget proposal would increase the tax to 35%.
“The truth lies somewhere in the middle,” says sports betting regulator Robert Linnehan of Sports Betting Dime. “The operators are obviously not happy with the proposal.”
Sports betting companies said higher taxes, if passed, would mean worse odds and fewer promotions for users – which they warn could fuel the illegal market. The companies also warn that the tax increase could drive all but the top three sportsbooks out of Illinois.
“This will impact the way you gamble,” Linnehan said. “People want more, states want more, and I think Illinois sees that they can make a lot more — and they’re going to look at this very closely.”
Pritzker press secretary Alex Gough said in part in a statement: “Raising the wagering tax to 35% would still leave Illinois far from the highest rates in the country, while New York, for example, hovers around 50%.”
Sowacke didn’t like the idea of a tax increase.
“I just think that’s crazy,” she said. ‘Are you adding more taxes? It is ridiculous.’
The Sports Betting Alliance suggests that Illinois should legalize online gaming, or iGaming, to generate more money. Right now, Illinois has a bill on the books, but it hasn’t gained much momentum yet.
iGaming is currently only legal in a handful of states.
Charlie de Mar
