FanDuel, DraftKings voice concerns over proposed Illinois gambling tax spikes
Both operators said they want to ‘re-evaluate’ their operations.
Both FanDuel and DraftKings have recently said they might ‘re-evaluate’ their operations in the state of Illinois, according to Chicago Sun Times local report. Both operators have expressed concerns over proposed tax increases.
However, some state lawmakers said that they are doubtful FanDuel and DraftKings will pull out of the state’s market.
The Illinois General Assembly recently passed a spending plan that would increase taxes on revenue from operators like DraftKings and FanDuel. The proposal includes a tax scale that tops out at 40%. This is a significant increase from the previous tax percentage, which up to now has been at a flat rate of 15% across the board.
This has prompted both operators to ‘re-evaluate their level of investment and participation in the state,’ the local report said.
Illinois Governor J.B. Pritzker shared with local news that the increases would allow the state to ‘get its fair share.’
So far this year, DraftKings and FanDuel have brought in more than $729m, thanks to Illinois players. Illinois currently boasts a $1bn gaming market, according to recent figures.
In other state news, an Illinois representative has put forth a proposal that could lead to statewide legalization of video poker and slot machines.
Representative Kam Buckner’s measure seeks to address needs within the community, including Chicago’s revenue needs and racial disparities within the video gaming industry.
The state of Illinois first welcomed legalized video gambling in 2012. However, Chicago never amended its local laws by lifting restrictions on devices that are currently present in liquor-serving establishments like bars, taverns and restaurants.
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