SBA responds to Illinois sports betting tax hike
The new rate would mean operators with the highest adjusted gross revenue would pay a 40% tax.
The Sports Betting Alliance (SBA) has issued a statement on the sports betting tax hike which passed through the Illinois Senate.
A sports betting tax hike advanced through the Senate in Illinois, which would mean the cheapest tax rate for any operator in the state would be at 20%, while the highest would be set at 40%, a figure that would make Illinois’ sports betting tax the second-highest in the US.
The SBA, whose members include BetMGM, DraftKings, FanDuel and Fanatics Sportsbook, issued a statement underlining that the tax hike was an “extremely disappointing decision that will cause real harm.”
SBA President Jeremy Kudon said within the statement: “This tax hike will mean worse products, worse promotions, and inevitably, worse odds for Illinois customers – not to mention provide a massive leg up to dangerous, unregulated and illegal offshore sportsbooks who pay no taxes and adhere to none of Illionois’ sports betting regulations.
“Sportsbooks across the industry will have no choice but to reevaluate their level of investment and participation in the state should this become law.”
This news has led to a reaction in the stock market, with DraftKings’ lowest share price on May 28, for example, being 35.54 USD at the time of writing (15:33 BST), which is down 12.9% from the closing price of 40.81 USD seen on May 24.
In other sports betting news, The Nation Network (TNN) has launched a new video podcast for a Canadian audience called “Hello and Welcome with Will Lou & Alex Wong,” which will be presented by Betway.
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