(The Center Square) – Illinois is one of several states emerging as a leader in generating tax revenue from sports betting.
A study by Doc’s Sports Service examines the significant impact of sports betting on state finances.
Illinois collects nearly a half billion dollars in sports betting tax revenue yearly, the fourth highest total of any state, but handicapper Raphael Esparza said other tax revenue is generated by sports gambling.
“Not only is that helping the state tax on the app, DraftKings, MGM or whatever, that’s also helping the bar that you are at watching games,” said Esparza.
New York collects the most taxes from sports wagering at more than $2 billion, followed by Pennsylvania and New Jersey.
Esparza suggests that for continued growth, bookmakers need to innovate.
“If books don’t continue to expand the betting product with new ways, customers are just going to jump around to different books and look for the biggest ‘bonus’ plays,” said Esparza.
The biggest sports betting day of the year is Super Bowl Sunday. Legal Sports Report projected the total Super Bowl betting handle across the U.S. was expected to grow more than 15% and surpass a record $1.5 billion. Illinois was expected to see the fourth highest betting total on the Super Bowl with just over $100 million in wagers on the big game.
While the excitement of the Super Bowl grabbed the spotlight, a national watchdog group said the Illinois Gaming Board is allowing several large operators to conduct unlicensed online parlay sports betting and that companies are specifically targeting teenagers.
“These large operators can call these wagers fantasy sports, but if it’s marketed and pays out like a parlay bet, it’s commercialized sports gambling, and parents need to be aware their children, especially young men, are being targeted with an addictive and dangerous product while the state’s regulator is asleep at the switch,” said Les Bernal, national director of the group Stop Predatory Gambling.
If you or someone you know has a gambling problem, the state of Illinois provides help here.