Illinois is seeing an early, measurable impact from its new per-wager tax: the number of bets placed fell about 15% after the levy took effect, even as total money wagered (handle) remained resilient—an outcome that underscores how “taxing the click” changes bettor behavior faster than it changes appetite.
Under the new structure, sportsbooks pay $0.25 per wager on their first 20 million bets and $0.50 per wager beyond that threshold, a design that hits high-volume operators hardest. In September, Illinois reported roughly 30.6 million wagers, down 15%, while handle reached about $1.42 billion, up 9% year over year. The split is telling: fewer tickets, but more dollars per ticket. Average bet size rose to about $46.44, up roughly 28% from around $36.20 a year earlier—consistent with customers consolidating plays into fewer, larger wagers to reduce “per bet” friction.
Revenue signals also point to pressure. September gross revenue was reported around $103 million, versus roughly $135 million in the prior-year comparison, despite the higher handle, reflecting both tax drag and the sensitivity of hold to product mix.
Illinois lawmakers push back on Chicago sports betting tax plan
Operators have started passing some of the cost through. FanDuel (Flutter Entertainment) announced a $0.50 per-bet surcharge in Illinois from September, tying the move directly to the new tax. Reuters reported the company warned the Illinois changes could reduce annual “core” profit by about $74 million without mitigation—an unusually explicit estimate that shows how quickly pricing strategy can become a compliance strategy.
The wider context matters: Illinois already moved to a graduated tax on adjusted gross revenue (AGR) from 20% to 40% in 2024, raising the all-in burden on the biggest brands. Add a per-wager fee, and the market’s incentive shifts toward fewer, higher-value bets—exactly what the September data appears to show.
