One Year Later, Illinois Per-Wager Tax is Still Going Strong

Last summer, the sports betting industry promised Illinois would regret its new per-wager tax. However, one year later, it appears the state’s gamble has paid off in a big way.

While fewer wagers are being placed, the state market’s adjusted gross revenue has gone up. That has led to the desired spike in tax revenue, helping lawmakers balance the state budget. That success has come despite intense industry pushback, prompting other states to consider adding per-wager taxes of their own.

Below, we’ll review how the tax changed the state’s sports betting market one year after its launch.

Rising Costs Lead to Fewer Wagers

Once it became clear lawmakers wouldn’t be deterred from enacting a new per-wager fee last July, sportsbook operators didn’t take long to respond. All ten of the state’s mobile platforms made changes that allowed them to pass the increased cost directly to bettors. 

Below is a table showing the changes all ten sportsbooks made in response to the controversial tax.

These changes made it more expensive, especially for casual bettors. This led to far fewer wagers being placed, but that was offset by larger bet amounts.

AGR, Tax Revenue Spiked

The Illinois Gaming Board has only released revenue reports through April 2026. As a result, we compared the numbers from July 2025 - April 2026 with those from July 2024 - April 2025. The new per-wager tax went into effect on July 1, 2025.

While overall wagers were down, the Illinois sports betting market continued to thrive. The adjusted gross revenue grew by over $182 million year over year. This was driven by rising costs for bettors, leading to an increase in the average wager placed in the state.

The increased AGR led to a spike in tax revenue, with around $58 million more being generated than the previous year.

Sportsbooks saw increased revenue, but Hard Rock seems to have benefited the most, nearly doubling its AGR year-over-year since the per-wager tax went into effect.

Surprisingly, hometown BetRivers sportsbooks have seen the smallest uptick, adding only $400,000 annually in AGR since July 1. 

Other States Taking Notice

When Illinois announced its per-wager tax, it was met with strong pushback from the sports betting industry. This led other states to hold off on following the Midwest market’s lead, but that has begun to change one year later.

Michigan added a proposal to impose the same tax in its 2026 budget, but it was stripped for lack of support. 

The Vermont House is currently considering HB 913, which proposes adding a $ 0.50-per-wager tax on each wager a sportsbook accepts. The bill is still stuck in a committee, meaning it is unlikely to become law in 2026.

There are a few other states that have discussed this option, further showing the impact of Illinois’s bold success.