Illinois Introduces Bill HB5143 To Get Rid of Per-Bet Sports Gambling Tax
Key Highlights:
- Repeal Proposed: HB5143 aims to eliminate the controversial per-bet tax by July 2026.
- Volume Decline: Illinois saw 27.6 million fewer wagers following the per-bet tax.
- Market Stability: The bill seeks to restore competitiveness and deter offshore gambling shifts.
The Illinois sports betting market could be headed for a much-needed course correction. Representative Daniel Didech just introduced House Bill 5143, a measure to repeal the state’s controversial “per-bet” tax on online sports wagering. The legislation, if passed, would amend the Sports Wagering Act to eliminate the tiered per-wager tax starting July 1, 2026.
The “Volume Tax” Experiment
Illinois made history and drew criticism from the gambling industry by moving beyond taxing Adjusted Gross Revenue (AGR) alone. Under the current framework enacted in July 2025, the state imposes a tiered per-bet fee on top of its already steep revenue tax:
- $0.25 per wager for the first 20 million bets annually
- $0.50 per wager for each bet beyond 20 million
While projected to generate an additional $36–40 million in state revenue, early results indicate the tax has reduced overall betting activity.
Data Shows Market Stagnation
According to the Illinois Gaming Board, the per-bet tax has deterred casual bettors and strained high-volume operators:
- September–December 2025: Illinois recorded 27.6 million fewer wagers than the same period in 2024
- December 2025: Betting volume fell 25.1% year-over-year
- Average bet size: Operators raised minimums to offset costs, pushing the average bet from $39 to over $50
“The wagers being down that sharply is a concern. No two ways about it,” said Chris Altruda, senior analyst at Third Planet Media. “When the anomalies happen, alarm bells go off because revenue will plummet and tax revenue drops with it.”
Operator and Consumer Impact
The per-bet tax has made Illinois one of the most expensive markets in the country for sportsbooks. Combined with the state’s graduated tax (20–40% of AGR) and Chicago’s 10.25% local wagering tax, operators face a cumulative burden that many say is unsustainable.
Industry groups, including the Sports Betting Alliance (SBA), warn that the costs are being passed to consumers, driving bettors toward offshore, unregulated markets. HB5143 is seen as a direct response to these pressures, aimed at restoring competitiveness to the legal market.
Lawmaker Perspective
Supporters of the original tax argued it was necessary to fund state priorities, including education and gambling oversight.
Rep. Didech, however, contends that repealing the per-bet fee will boost wagering volume, ultimately increasing revenue through Illinois’ primary graduated tax while keeping the market legal and regulated.
Legislative Outlook
Filed on February 5, 2026, HB5143 is in the introductory phase.
While the bill is popular with operators, proponents will need to convince colleagues that short-term revenue loss from the per-bet fee will be offset by a healthier, higher-volume market.
| Bill | Sponsor | Proposed End Date | Primary Goal | Status |
| HB5143 | Rep. Daniel Didech (D) | July 1, 2026 | Repeal $0.25–$0.50 per-wager tax | Introduced / Filed with Clerk |
As the 2026 legislative session progresses, all eyes will be on Springfield to see if Illinois will retreat from its per-bet tax experiment in favor of long-term market stability.
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