Illinois Governor JB Pritzker is confident that leading sports betting companies FanDuel and DraftKings will not pull out of the state despite a significant tax increase on sports wagering. The tax hike, which was recently approved by lawmakers, will see the tax rate on sports betting revenues increase from 15% to 25%.
Pritzker believes that the popularity of Illinois as a sports betting market, with a large population and strong sports culture, will outweigh the impact of the tax hike on these companies. He is betting that FanDuel and DraftKings will choose to remain in the state rather than lose out on the potential profits from their Illinois operations.
The Governor’s confidence in these companies’ commitment to the Illinois market comes at a time when the sports betting industry is experiencing rapid growth nationwide. With more states legalizing sports betting and expanding their markets, companies like FanDuel and DraftKings have a vested interest in maintaining a presence in each state where they operate.
The tax hike in Illinois is expected to generate significant revenue for the state, with estimates suggesting that it could bring in an additional $100 million annually. This additional funding will be used to support various programs and initiatives in Illinois, including infrastructure improvements and education funding.
Overall, Governor Pritzker’s bet on the loyalty of FanDuel and DraftKings to Illinois could prove to be a wise one, as these companies continue to capitalize on the expanding sports betting market in the state. The increased tax revenues will also benefit Illinois residents and help to improve the overall economy.
Source
Photo credit news.google.com