The Sports Betting Alliance has hit out advancing plans in Illinois to move to a progressive sports betting tax system.
As reported by SportsHandle, the first rung of the tax ladder will be a 20 per cent tax on adjusted gross revenue of up to US$30m.
The heaviest burden will be felt by operators making over $200m in AGR, which will trigger a 40 per cent tax.
The plans, part of House Bill 4951 which passed in the Senate on Sunday, now heads to the state’s House before potentially being passed to Governor JB Pritzker.
The Sports Betting Alliance’s president, Jeremy Kudon, labelled the plans “extremely disappointing” and said the decision will “cause real harm.”
He said the progressive tax system “counterproductively penalises sports betting operators who invested millions into the local economy and created jobs in the state.”
“The tax hike will mean worse products, worse promotions and, inevitably, worse odds for Illinois customers – not to mention provide a massive leg up to dangerous, unregulated and illegal offshore sportsbooks who pay no taxes and adhere to none of Illinois’ sports betting regulations,” Kudon said.
“The 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.
“Sportsbooks across the industry will have no choice but to reevaluate their level of investment and participation in the state should this become law.”
The plans would give Illinois the second-highest sports betting tax rate behind New York's 51 per cent.
