Record-Breaking Revenue
The Illinois Gaming Board reported that the adjusted gross revenue for June reached an all-time high of $95 million. This figure represents a 73% increase compared to the same period last year. The adjustment to DraftKings’ online winnings played a crucial role in this surge, contributing significantly to the overall revenue. The state’s sportsbooks have consistently shown strong performance, and this latest report highlights their continued growth and success.
The total handle for June was nearly $848 million, reflecting a substantial increase from the previous year. This growth in handle indicates a rising interest in sports betting among Illinois residents. The state’s sportsbooks have managed to attract a large number of bettors, contributing to the impressive revenue figures.
Despite a slight decline in revenue compared to May, the overall performance of Illinois sportsbooks remains robust. The state’s ability to generate such high revenue figures is a testament to the effectiveness of its sports betting regulations and the appeal of its sportsbooks to bettors.
Impact of Progressive Tax Rates
June marked the last month of the flat 15% sports betting tax rate in Illinois. Starting from July 1, the state introduced progressive tax rates that range from 20% to 40% based on revenue thresholds for each licensee. This change is expected to have a significant impact on the revenue generated by sportsbooks in the state.
The new tax structure aims to ensure that higher-earning sportsbooks contribute more to the state’s coffers. This progressive approach is designed to create a fairer tax system and generate additional revenue for the state. The introduction of these new rates is likely to influence the strategies and operations of sportsbooks in Illinois.
The state’s decision to implement progressive tax rates reflects its commitment to maximizing the economic benefits of sports betting. By ensuring that higher-earning sportsbooks pay a larger share of taxes, Illinois aims to create a more equitable and sustainable sports betting industry.
Contributions to State and Local Economies
The revenue generated by Illinois sportsbooks has a significant impact on both state and local economies. In June, the state collected $14.2 million in taxes from sports betting activities. This figure represents a substantial increase compared to the previous fiscal year, highlighting the growing economic importance of sports betting in Illinois.
Cook County, which includes Chicago, also benefited from the revenue generated by sportsbooks. The county collected $1.1 million in taxes based on its 2% levy on sports betting revenue. This additional revenue provides valuable funds for local government initiatives and services.
The DraftKings Sportsbook adjacent to Wrigley Field contributed $1,800 in tax revenue for the City of Chicago. This revenue is part of the city’s 2% tax on sports betting winnings. The contributions from sportsbooks help support various city projects and services, enhancing the quality of life for residents.
