A new bill in Springfield could roll back Illinois’ controversial per-wager fee and reshape how much online bettors really pay to place a bet.
HB 5143 Targets the “Volume Tax”
Illinois’ brief experiment with taxing every online wager may be nearing its end. State Rep. Daniel Didech has filed House Bill 5143, aiming to repeal the per-bet fee beginning July 1, 2026.
The measure would amend the state’s Sports Wagering Act and eliminate the tiered charge imposed on each online bet placed through licensed sportsbooks.
Illinois introduced the fee in July 2025 as a way to raise extra revenue beyond its existing tax on Adjusted Gross Revenue (AGR). The structure is simple:
- $0.25 per wager for the first 20 million bets annually
- $0.50 per wager for every bet beyond that mark
The state expected the policy to bring in roughly $36–$40 million per year. Early data suggests it came at a cost.
Fewer Bets, Higher Minimums
According to figures released by the Illinois Gaming Board, betting activity dipped after the tax kicked in.
Between September and December 2025, Illinois logged 27.6 million fewer wagers compared to the same stretch in 2024. December alone saw betting volume drop 25.1% year over year.
Operators responded in predictable fashion: raise prices.
Major platforms like DraftKings and FanDuel introduced $0.50 per-bet surcharges in Illinois. Some books also bumped minimum wagers, pushing the average bet size from about $39 to more than $50.
For casual players, that means fewer small, low-risk bets and less room to dabble.
Antoine Smith, a Chicago bettor interviewed by WLS-TV, said the shift changed his habits. “I bet less than I used to,” he said, pointing to the tax on betting volume rather than winnings.
A Tax Stack That Keeps Growing
The per-bet fee sits on top of an already aggressive tax framework.
Illinois taxes sportsbook AGR on a sliding scale:
- 20% on revenue up to $30 million
- 40% on revenue above $200 million
Layer in Chicago’s 10.25% local tax and Cook County’s additional 2%, and operators face one of the heaviest burdens in the country.
Industry group Sports Betting Alliance argues the stack of taxes is pushing customers toward offshore platforms and illegal bookmakers, where pricing is often better and no per-bet fee exists.
Joe Maloney, president of the alliance, says Illinois is seeing three straight months of 15% declines in total wagers, a trend he claims isn’t mirrored in other regulated states.
The concern for lawmakers is straightforward: fewer bets could eventually mean less tax revenue overall.
National Boom, Illinois Slowdown
The debate comes as sports betting nationally continues to surge.
The American Gaming Association estimated Americans legally wagered a record $1.76 billion on Super Bowl LX, a 27% jump from the prior year.
Illinois remains one of the top markets in the country, second only to New York in overall handle. Total dollars wagered are still climbing, even if the number of individual bets is falling.
That split tells an interesting story. Bigger bets are being placed, but fewer of them.
For everyday players, that usually means tighter bankroll management and fewer casual wagers.
Lawmakers Split on the Fix
Supporters of the original per-wager tax said it was necessary to fund state priorities, including education and gambling oversight.
Rep. Didech argues the opposite approach may produce better results. Repealing the per-bet charge, he says, would increase volume, drive activity back to licensed platforms, and let the existing revenue-based tax do the heavy lifting.
HB 5143 was filed on February 5, 2026, and is currently in the introductory phase. Operators are firmly behind it. Fiscal hawks in Springfield are expected to push back, wary of giving up a dedicated revenue stream.
