Despite a record-breaking Super Bowl LX that saw Americans legally wager an estimated $1.76 billion, the burgeoning sports betting market in Illinois is showing signs of a slowdown. While the nation celebrated a nearly 27% year-over-year increase in wagers, the state of Illinois is experiencing a concerning trend: three consecutive months of 15% declines in the number of bets placed, according to the Sports Betting Alliance.
The discrepancy stems from a per-bet tax implemented last July, which adds a fee of $0.25 to $0.50 to each online wager in Illinois. Major platforms like DraftKings and FanDuel have responded by adding a $0.50 surcharge to online bets within the state.
“The state of Illinois is showing three consecutive months of 15% declines in the amount of bets. That’s very, very telling, and it is something that is not happening anywhere else in the country that has online sports wagering,” stated Joe Maloney, President of the Sports Betting Alliance. The Alliance represents several major sportsbooks and is currently challenging the tax in court.
The timing of this downturn is particularly noteworthy, coinciding with Super Bowl LX, traditionally a peak period for sports betting. The American Gaming Association’s projection of $1.76 billion in national wagers underscores the overall health of the market, making Illinois’s struggles all the more conspicuous.
The impact of the tax is being felt by bettors as well. Antoine Smith, a sports bettor, noted the change in his own behavior. “I bet less than I used to because of this. With it being more about volume, or the tax on the volume of betting, as opposed to winning, it’s definitely made me slow down a little bit more,” he said.
Maloney argues that the tax is driving bettors towards illegal markets and across state lines. “It’s no different than choosing which drugstore to conduct your business, which casual fast food chain to conduct your business, or which grocery store to go to. When you have choice on a marketplace, you’re going to go where there is the best pricing,” he explained. He further warned that the tax could incentivize bettors to seek out cheaper, but riskier, illegal betting options.
The situation in Illinois highlights a broader debate about the optimal taxation of sports betting. States are grappling with how to generate revenue from the rapidly growing industry while also maintaining a competitive and regulated market. The Illinois case serves as a cautionary tale, demonstrating that overly burdensome taxes can have unintended consequences, potentially undermining the very market they aim to support.
The decline in betting activity comes after the state previously enacted a graduated tax on the industry in 2024, followed by the per-wager tax. A further tax of 10.25% was implemented in Chicago on January 1, adding another layer of cost for bettors within the city limits.
The Illinois Gaming Board’s November 2025 Sports Wagering Report revealed a 15.4% decrease in sports bets placed in the state compared to November 2024, representing a loss of 6.1 million bets. This trend continued in the subsequent months, signaling a sustained shift in betting patterns.
While Governor JB Pritzker’s office has not yet responded to requests for comment, the Sports Betting Alliance is hoping to engage policymakers in a dialogue about the impact of the tax and explore potential solutions. The future of sports betting in Illinois, and the state’s ability to capitalize on the national boom, may depend on finding a balance between revenue generation and market competitiveness.
The nationwide surge in Super Bowl wagering, fueled in part by celebrity endorsements and increasingly sophisticated marketing campaigns, underscores the growing mainstream acceptance of sports betting. However, the Illinois experience serves as a reminder that regulatory policies play a crucial role in shaping the industry’s trajectory. As more states consider legalizing sports betting, they will undoubtedly be watching Illinois closely to learn from its successes and challenges.
