Published on: August 28, 2025, at 12:17 PM.
Updated on: August 28, 2025, at 12:37 PM.
- Sports Betting Alliance (SBA) criticizes Illinois for recent sports betting tax increase.
- Stresses that it will push smaller bettors towards unregulated bookmakers.
The Sports Betting Alliance (SBA), a coalition representing US sportsbook operators, harshly criticized Illinois for its recent increase in sports wagering taxes. The newly imposed levy per bet on gaming companies is projected to drive smaller bettors to unregulated betting markets.
The SBA’s Illinois chapter issued a press release Thursday, condemning the state for charging operators 25 cents per bet for the initial 20 million bets placed. This amount then escalates to 50 cents for each subsequent bet after reaching that threshold—an adjustment the organization feels will negatively affect smaller bettors.
“Data reveals that Illinois’ new per-bet tax will primarily impact recreational bettors who typically place small wagers, with over half of the bets made in Illinois being $5 or less,” stated the SBA of Illinois in their announcement. “This tax will push more Illinois residents toward the illegal and exploitative sports betting markets that are expanding across the nation—raising concerns among the state’s leading consumer advocates, such as the Illinois Attorney General and the Better Business Bureau.”
On a national scale, SBA’s members include renowned sportsbooks like Bet365, BetMGM, DraftKings, Fanatics, and FanDuel.
SBA Raises Alarm for Upcoming Football Season in Illinois
As the 2025 football season kicks off tonight, the tax implications for Illinois are heightened, since football represents the most wagered sport across the US.
In response to the latest tax increment, which marks the second increase within a year, sportsbook operators in Illinois have either begun to charge per-bet fees or have increased minimum bet sizes. Both actions could potentially lead bettors to unregulated markets, according to the Illinois SBA.
“As a growing number of companies start to pass the Illinois per-bet sports wagering tax onto consumers, the risks associated with the burgeoning illegal online gaming market will escalate,” asserts the organization.
This week, Caesars Sportsbook joined others like DraftKings, Fanatics, and FanDuel in implementing per-bet fees in Illinois. Meanwhile, BetMGM, Circa Sports, ESPN Bet, Hard Rock Bet, and Rush Street Interactive have also set minimum bet sizes, albeit typically small, within the state.
SBA Faces Criticism as Well
In the sports betting community, operators who charge transaction fees have faced backlash, as has the SBA itself, with critics arguing that the organization should have anticipated this latest increase considering the state transitioned to a progressive sports wagering tax model last year.
Democratic Governor J.B. Pritzker has enacted over 50 tax increases since taking office in January 2019, meaning the state’s endeavor to extract additional revenue from the gaming sector is not unexpected. Nevertheless, it remains a contentious issue for the SBA.
“Alongside Illinois’ graduated tax for 2024, the state’s per-bet tax is positioning the taxes imposed on legal sports betting patrons as the highest in the nation,” the organization noted in its statement. “Unregulated, offshore operators provide more affordable sports betting options for customers, devoid of any consumer protections—including age verification—and without proper oversight.”