Illinois (USA): gambling regulation and licensing
State of Illinois
Part of United States
- Online sports bettingRegulated
- Online casinoProhibited
- Land-based (reference)Regulated
- Regulator
- Illinois Gaming Board
- Headline tax
- 40% GGR
- Licence required
- Not yet verified
- Last verified
- 30 Aug 2026
Summary
Illinois has changed how it taxes sports betting twice in two years, and the second change was the one the industry did not have an answer for. The state left its 15% flat rate in mid-2024 for a graduated scale that runs from 20% on the first $30 million of annual adjusted gross receipts to 40% above $200 million, which by design falls hardest on the two largest operators. Then, from 1 July 2025, it added a per-wager assessment on top: $0.25 on each of the first 20 million online wagers in a fiscal year and $0.50 on every wager after that. Unlike a revenue tax, this is charged whether the wager wins, loses or is a low-margin bet the operator makes almost nothing on. The operator response was unprecedented. Rather than absorb it, DraftKings, FanDuel and Caesars each introduced their own per-bet transaction fee on Illinois customers, passing the assessment through to bettors directly. A bill to repeal the assessment has been introduced.
Common pitfalls
The headline 40% is the top band of a graduated scale, not a flat rate, and it sits alongside a separate per-wager assessment that a percentage rate does not capture.
Key facts
- Regulator
- Illinois Gaming Board (IGB)
- Regulator type
- Sub-national body
- Headline tax
- 40% GGR
- Licence required
- Not yet verified
- Minimum age
- Not yet verified
- Tax base
- A graduated tax on annual adjusted gross receipts: 20% on the first $30 million, rising through 25%, 30% and 35% bands to 40% above $200 million. Since 1 July 2025 online operators also pay a per-wager assessment of $0.25 on the first 20 million wagers in a fiscal year and $0.50 on each wager thereafter. The 40% figure recorded here is the top band, not a flat rate.
- Capital
- Springfield
- Currency
- USD
- Official languages
- English
Legal framework
Key amendments
- 1 Jul 2024Illinois replaced its 15% flat sports wagering tax with a graduated scale running from 20% on the first $30 million of annual adjusted gross receipts to 40% above $200 million.
- 1 Jul 2025A per-wager assessment took effect in addition to the percentage tax: $0.25 on each of the first 20 million online wagers in a fiscal year and $0.50 on every wager after that.
Pending legislation
Bill to repeal the per-wager assessment
- Stage
- introduced
- What it changes
- Would end the per-wager betting tax introduced in July 2025.
Taxation
- Headline GGR tax
- 40% GGR
- Effective date
- 1 Jul 2025
- Tax base
- A graduated tax on annual adjusted gross receipts: 20% on the first $30 million, rising through 25%, 30% and 35% bands to 40% above $200 million. Since 1 July 2025 online operators also pay a per-wager assessment of $0.25 on the first 20 million wagers in a fiscal year and $0.50 on each wager thereafter. The 40% figure recorded here is the top band, not a flat rate.
Advertising
- Advertising permitted
- Yes
- Affiliate rules
- Affiliates are not separately licensed. The operator remains accountable for advertising published on its behalf, and only state-licensed operators may be promoted.
- Celebrity and influencer rules
- Advertising must not be directed at people below the legal minimum gambling age, which constrains the use of personalities and channels with an under-age following.
- Penalties for breach
- T supervises advertising as part of its licensing function and can take disciplinary action against the licence.he Illinois Gaming Board
Restrictions
- Advertising is regulated by the Illinois Gaming Board as a condition of licensure rather than under a separate advertising statute.
- Only operators licensed in the state may lawfully be promoted to its residents.
- Advertising must not be directed at people below the legal minimum gambling age.
- Operators must not direct marketing at self-excluded persons.
- Online casino is not authorised, so only sports betting may be promoted. This is the most common misreading of a US state record: a sports betting licence is not an iGaming licence.
Outlook
Illinois is the live test of whether a per-wager tax survives contact with a market. It has already produced customer-facing fees that no other state has, and a repeal bill. Any state considering the same mechanism will read what happens next here.
Frequently asked questions
- What is Illinois's sports betting tax rate?
- A graduated 20% to 40% of annual adjusted gross receipts, plus a per-wager assessment of $0.25 or $0.50 depending on volume.
- Why do Illinois sportsbooks charge a fee per bet?
- Operators introduced their own transaction fees in response to the state's per-wager assessment, which took effect on 1 July 2025.
Sources
- Illinois Gaming Board
State of Illinois
Tier 1Accessed 22 Aug 2026 - Tier 2Accessed 22 Aug 2026
- Tier 2Accessed 22 Aug 2026Published 10 Jun 2025
- Tier 2Accessed 22 Aug 2026