(The Center Square) – An industry expert says Gov. J.B. Pritzker’s budget proposal to increase the sports betting tax by 20% could cause ripple effects in the industry.
If approved by the legislature, the tax for sports book operators would go from 15% to 35%, one of the highest percentages in the country. If enacted, the higher tax would take effect July 1, the start of the new fiscal year. Pritzker’s office estimates it could generate $200 million in increased tax revenue.
Dan Holmes with the gambling information website PlayIllinois said a huge increase in the tax could possibly prompt some operators to scale back operations.
“There have been situations like in New York where Caesars and BetMGM both came out and said ‘the cost of acquiring customers is so high, we’re going to reduce our market spend,’” said Holmes.
New York has a 51% tax on mobile sports betting revenue.
Holmes said big
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