(The Center Square) – With another neighboring state considering legalizing sports betting, Gov. J.B. Pritzker doesn’t see any adverse effects on Illinois’ sports betting industry.
Next month, voters in Missouri will decide whether to legalize sports betting. DraftKings recently contributed another $5 million in efforts to legalize online sports betting in Missouri.
Pritzker included a hefty tax hike for sports betting companies in his latest Illinois budget, and some were worried that the companies would pack up and leave. Pritzker said that didn’t happen when the Hoosier State allowed sports betting.
“There is betting in Indiana, so that hasn’t happened,” said Pritzker. “Companies are not getting up and leaving as a result of a change in the tax code.”
Next year, Illinois’ new progressive tax rate will start at 20% for the lowest-earning sportsbooks and climb to as much as 40% based on monthly profits for the biggest earners.
Last July, DraftKings announced that it would add surcharges to high-tax states like Illinois. Illinois and three other states were singled out in the initial announcement by DraftKings, but following backlash, the company decided not to follow through with the extra charges.
“We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers,” the company said in a statement.
PlayIllinois.com Managing Editor Tyler Andrews said this is probably not the end of the surcharge talk.
“I wouldn’t say that bettors have won at this point, but what I would say is when you impose these really high tax burdens on operators, it is going to come back to the customers eventually,” said Andrews.
According to the Illinois Gaming Board, Illinois is the second ranked sports betting market behind New York.
