Gamblers placing fewer wagers in Illinois since new tax imposed

Gamblers are placing far fewer bets with Illinois sportsbooks since the state imposed a per-bet tax on online wagers last year.

Data released Thursday by the Illinois Gaming Board shows gamblers placed 25.1% fewer bets in December 2025 than during the same month a year prior. That drop amounted to nearly 10 million fewer bets.

December’s bet decline was preceded by three months where bets were down more than 15% year-to-year each month, the gaming board data shows. The four months combined — September through December — account for more than 27.6 million fewer wagers placed in 2025 than in 2024.

For the entirety of 2025, bets were down 4.1%, records show.

“The concerning thing is this is the only jurisdiction where this is actually taking place, and we can pinpoint the moment it began,” said Joe Maloney, president of the Sports Betting Alliance, a national sportsbook lobbying group.

The decline in bets began in July when a new tax went into effect charging 25 to 50 cents per online bet depending on the sportsbook’s annual volume. Nearly 99% of all sports bets placed in Illinois each year are done via online apps.

The decline in bets over the last four months of 2025 represents $6.9 million less than expected to the state.

The governor’s office did not respond to requests for comment about the effect the loss of wagering will have on the state’s budget.

In response to the state’s per-bet tax, sportsbooks in Illinois instituted minimum bets or placed a surcharge on most online bets to cover the additional cost. This had a twofold effect, experts believe. Fewer bets were placed and gamblers started betting more money.

“They’re increasing the size of their bet, which is something many responsible gaming experts warned policymakers about, or they’re looking elsewhere, illegal or unregulated platforms,” Maloney said.

Due to minimum betting requirements, the average bet in December was more than $50 for the first time since sports betting was legalized in Illinois. In December 2024, the average bet was less than $39.

Another interesting thing happened in December that gave industry experts pause. For the first time in 2025, the amount of money being bet declined from the same month the previous year.

While the state saw betting decline more than 15% in September, October and November, state finance officials could take solace in the fact that gamblers were spending more. That didn’t happen in December.

According to the IGB data, the state’s sportsbooks saw a 3.4% drop in the amount bet in 2025 from 2024, amounting to $50 million less being wagered.

Because the state also taxes sportsbooks on their earnings, 20% on the first $30 million of profits and then increasing in tiers up to 40% on revenue over $200 million, tax revenue would have dropped below expectations as well.w

“The wagers being down that sharply, yes a concern. No two ways about it,” said Chris Altruda, senior analyst at Third Planet Media, which covers the gaming industry. “But it’s when the anomalies happen that alarm bells will go off because revenue will plummet and tax revenue drops with it.”

By the end of 2025, the amount of money placed on sports bets was about $1.6 billion over what was wagered in 2024, but industry experts worry the amount will start to plummet.

Maloney said his organization is working with state legislators to potentially change the state’s sports betting tax structure. It will lead to better opportunities for Illinois gamblers, he said.

“What you’re seeing happen in Illinois is very indicative of how certain types of tax policies can restrict growth and innovation,” he argued.