Illinois has implemented a new tax rate for sports betting, making it the second highest in the country. The state now imposes a tax rate of 17% on sports betting revenue, following only Rhode Island which has a 51% tax rate. The new tax rate took effect in July, as part of an expansion of gambling in the state.
The increase in the tax rate has drawn concerns from industry experts, who fear that it may deter potential operators from entering the Illinois market. Some have argued that the high tax rate could drive away customers to neighboring states with lower taxes, such as Indiana which has a tax rate of 8.5%.
Despite these concerns, supporters of the new tax rate argue that it will bring in much-needed revenue for the state. Illinois has seen a surge in sports betting activity since legalizing it in 2019, with many residents embracing the opportunity to wager on their favorite sports teams. The state has also seen an increase in revenue from sports betting, with the industry generating over $580 million in bets in the last year.
With the new tax rate in place, Illinois is poised to continue its growth in the sports betting industry. While some may be wary of the higher taxes, others are optimistic about the potential for increased revenue for the state. As the industry continues to evolve, it remains to be seen how the new tax rate will impact sports betting in Illinois.
Source
Photo credit news.google.com