Illinois Enacts New Taxes on Fantasy Sports and Prediction Markets

Illinois Enacts New Taxes on Fantasy Sports and Prediction Markets – Illinois Governor J.B. Pritzker has signed the fiscal year 2027 budget, introducing a new 15% tax on fantasy sports contest receipts and a 1.75% tax on prediction market sports bets. These measures are projected to generate additional state revenue.

What Happened

Governor J.B. Pritzker recently signed the fiscal year 2027 budget into law, which includes new taxation measures targeting specific gambling activities. Among these new provisions is a 15% tax on fantasy sports contest receipts. This particular tax is reportedly anticipated to generate approximately $5 million for the state, according to Shaw Local Enewspapers. Additionally, the new budget implements a 1.75% tax on sports bets placed within prediction markets.

These new taxes follow previous adjustments to gambling taxation in Illinois. Earlier changes included a quarter-dollar levy per wager on the initial 20,000 bets placed at each legal sportsbook, increasing to 50 cents subsequently. Other revisions specifically targeted operators such as FanDuel and DraftKings, aiming to generate an additional $250 million for the state treasury, as reported by Shaw Local Enewspapers.

Key Details

• The fiscal year 2027 budget, signed by Governor J.B. Pritzker, includes new gambling-related taxes (Shaw Local Enewspapers).
• A 15% tax has been introduced on fantasy sports contest receipts, expected to yield $5 million (Shaw Local Enewspapers).
• A 1.75% tax will now be applied to sports bets completed on prediction markets (Shaw Local Enewspapers).
• Previous tax adjustments included a quarter per wager on the first 20,000 bets at legal sportsbooks, increasing to 50 cents thereafter (Shaw Local Enewspapers).
• Measures targeting FanDuel and DraftKings were reportedly aimed at generating $250 million (Shaw Local Enewspapers).

Why It Matters

The introduction of new taxes on fantasy sports and prediction markets signifies an ongoing strategy by the state of Illinois to leverage regulated gambling for revenue generation. This trend reflects a broader governmental approach to diversify state income sources, particularly evident in regulated markets. The continuous adjustments to tax structures, including those impacting major operators like FanDuel and DraftKings, demonstrate an active regulatory environment seeking to optimize fiscal benefits from the expanding gambling sector.

Historical context, as cited in Shaw Local Enewspapers, indicates a long-standing pattern of Illinois governments revisiting and expanding gambling options to secure new revenue. This includes developments from casino expansions to the eventual legalization and taxation of sports betting following the 2018 U.S. Supreme Court ruling. The current budgetary measures continue this trajectory, highlighting the financial reliance on and continued legislative interest in the regulated gambling industry.

What’s Next

The enacted fiscal year 2027 budget, encompassing these new gambling taxes, has been signed into law by Governor J.B. Pritzker. This means the new tax provisions on fantasy sports contest receipts and prediction market bets are now official policy in Illinois.

Originally reported by: Shaw Local Enewspapers. Published: 6/20/2026, 3:00:00 PM.