New Law Could Force Online Sports Gambling Out Of Illinois
The cost of operating as a legal bookmaker in Illinois will go up.
I can't blame the state for attempting to make a few extra bucks off an industry doing well in the Land of Lincoln.
If you need proof, look at Draft Kings shares the day the Illinois House of Representatives approved a new budget bill to increase the tax on online books like theirs.
While the bill needs to be approved by Governor J.B. Pritzker, it looks like it will happen.
Under H.B. 4951, online bookmakers like Draft Kings and FanDuel will be subject to a 20% tax on "annual online sports betting revenue up to and including $30 million starting on July 1," according to Covers.com.
That number would then increase to 25% up to $50 million, 30% up to $100 million, 35% up to $200 million, and 40% for more than $200 million.
Long story short, more money for Illinois, less for the books, but don't feel that bad.
Our Quad Cities.com says Fan Duel and Draft Kings made $700 million in 2023 and $250 million thus far in 2024, so it looks like they can afford the tax, but will they want to?
That probably means the future of online books in Illinois is in the air, and if you expected a murky response from the leaders in online sports gambling, you'd be correct.
Fan Duel and Draft Kings say "higher taxes might force them to reevaluate their futures in Illinois," per WHBF in Davenport via MSN.
They can reevaluate all they want, but at the end of the day, both books know Illinois is just too robust of a state for either to take their ball and go home, so I believe they'll play along.
I guess I'm saying I wouldn't bet on Draft Kings or Fan Duel packing up anytime soon.
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