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Analyst warns Illinois betting tax hike could trigger similar moves in other states

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Analyst warns Illinois betting tax hike could trigger similar moves in other states


The decision by lawmakers in Illinois to push ahead with an increase in sports betting tax could push other states across the US to take similar action, an analyst from consultancy B Global has warned.

Last week, the Illinois house of representatives passed a progressive wagering tax rate. This will see the state’s most prolific sports betting operators pay tax at 40%, a sharp rise from the current rate of 15%.

The new-look structure sets rates at between 20% and 40%, depending on each operator’s adjusted gaming revenue (AGR). Operators posting more than $200m (£157m/€184m) face the highest rate of 40% – second-highest tax rate in the US behind New York at 51%.

Other boundaries include a 20% tax rate for operators with an AGR of under $30m, 25% for between, 30m and $50m, 30% for AGR ranging from $50m to $100m, and 35% for AGR of $100m to $200m.

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The proposal, which forms part of the FY2025 budget in Illinois, is now with Illinois governor JB Pritzker for sign-off. Should Pritzker decide the pass the law, the new rates will come into effect from 1 July.

Potential knock-on effect of betting tax increase

Brendan Bussmann of B Global, a consultancy serving the gaming, sports and hospitality industries, has now tabled further concerns through a note from Truist. These primarily relate to the knock-on effect the increase could have, saying further states could follow suit with similar increases.

“With Illinois the second state to increase its tax rate [after Ohio raised its rate from 10% to 20% in 2023], investors have an increased concern around contagion,” Bussmann said.

Singling out other states, Bussmann highlights recent activity elsewhere that could signal a move to higher taxes. Massachusetts considered a hike this year, though it was quickly rejected, with Bussmann saying this is unlikely to pass in the future. 

Bussmann said there has also been talk about a hike in New Jersey. However, he believes this is unlikely given how seasoned the state is with governing gaming policy. In addition, he referenced Pennsylvania as a possible candidate, but said attention here is more likely to be on the proliferation of skill-based games. 

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Higher taxes punish largest contributors in Illinois

Bussmann, himself a proponent of lower tax operating environments, also criticised Illinois for going after the most lucrative operators. He noted how the higher tax rates will hit the operators that already contribute the most tax revenue in the state. 

He also warned that pushing tax up could have a negative impact on the overall market in Illinois. With operators facing higher costs, this may see them withdraw promotions, cut back on their offering and offer worse odds.

DraftKings and FanDuel Group’s parent company Flutter Entertainment both saw their stock price declinewhen the plans were announced. DraftKings and Flutter would be facing the highest rate of tax, with both having AGR un excess of $200m.

In addition, Bussmann went as far to say as the rise would be most beneficial for offshore betting operators. As these brands do not pay tax, any potential exit of licensed operators from the market would push more traffic their way.

What is happening elsewhere?

Longer-term, Bussmann worries states yet to legalise betting will institute higher tax rates at conception without understanding industry dynamics.

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Among the states yet to legalise wagering are Minnesota, which ran out of time in the latest legislative session, Georgia, and Missouri, where a ballot initiative aimed at this November’s ballot will likely fae strong opposition from land-based casinos.

Bussmann said California and Texas continue to be key states to watch, given their size and the potential impact on the overall legal gambling picture in the US. According to Bussmann, California is having productive conversations around sports betting being on the ballot in 2026. However, he adds that a 2028 move is more likely, given ongoing tribal opposition.

As for Texas, opposition from Governor Greg Abbott to legal gambling means any move is not likely for several years, perhaps as far ahead as 2027.

Elsewhere, Bussmann notes the decision by the DC Office of Lottery and Gaming to switch from Gambet DC to FanDuel. This, he says, has seen an immediate pickup in traction – to the point where there is now talk of opening up the market to other operators.

Away from sports betting, Bussmann acknowledges an effort by Arkansas to consider legal igaming earlier this year. However, this ultimately came to nothing, with Bussmann saying legalisation is not likely to be imminent,

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Maryland also failed to get igaming across the line during the last session, though continues to face budget constraints potentially driving the conversation.

In addition, Illinois itself remains a candidate for legalising igaming, with Bussmann expecting the state to make a move at some point. However, he recognises how other legal activity in the state could slow progress.

Alongside the higher sports betting tax, Illinois faces expanding video gaming terminals into Chicago and Bally’s building a land-based casino in the downtown region. 



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Illinois

Produce Recall Issued In Parasite Outbreak Hitting IL

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Produce Recall Issued In Parasite Outbreak Hitting IL


A number of Taco Bell locations have posted signs announcing they are “currently unable to sell Lettuce, Cilantro Onion, Pico de Gallo, and Guacamole due to a nationwide recall,” according to Detroit-area news radio outlet WWJ.

Taco Bell told the Post it would keep monitoring the situation and follow authorities’ guidance.

Taco Bell Lettuce Linked To Growing MI Parasite Outbreak: FDA

“Public health officials have not confirmed a link to Taco Bell or any specific ingredient, supplier, restaurant or retailer,” the company told the Post. “While authorities continue their broader review, Taco Bell has voluntarily and temporarily removed limited ingredients at select restaurants as a precautionary measure.”

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In Michigan, where cases have been concentrated, media reports said notices were posted at some Detroit-area Taco Bell restaurants last week telling customers the chain was “currently unable to sell Lettuce, Cilantro-Onion, Pico de Gallo, and Guacamole due to a nationwide recall.”





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Illinois GOP trails badly in midterm cash

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Illinois GOP trails badly in midterm cash


The Illinois Republican Party filed its quarterly campaign finance report on the July 15 deadline. The party reported having just $223K in the bank. The next day, the party sent a letter to the Illinois State Board of Elections saying they were “reconciling” their records after a leadership change, and then noted that their actual end balance was $101K higher than it had reported the day before.

But that bit of found money was basically the end of the “good news” for the GOP last week.

Republicans no longer have a pet billionaire. Bruce Rauner and Ken Griffin have fled the state. The legions of wealthy business titans who once contributed and raised money have either retired to sunnier climes or passed away. Several prominent party members have publicly shunned labor unions and their hefty political war chests, although the state GOP legislative leaders have at least tried to rebuild ties to trade unions and even the Illinois Education Association. But the heavily gerrymandered legislative map combined with the current political climate means they’ll mostly receive scraps.

And, yes, the House Democrats are struggling this month with scandals, including a state representative who resigned under pressure and another who was indicted. I’m not trying to downplay that at all. But Democrats have the national political environment, the local infrastructure and tons of cash behind them. The Republicans have little to none of that.

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The GOP’s gubernatorial candidate, Darren Bailey, raised $1.3 million in the second quarter, which ended June 30. That sounds like a lot, but he spent almost all of that on direct mail fundraising costs. The huge expenditures do give him a prospect list for future fundraising, but he ended the quarter with a mere $128K in the bank. That was still a whole lot more than the rest of the statewide ticket.

Attorney General nominee Bob Fioretti, a perennial candidate, raised $31K, spent $39K and had $28K on hand at the end of the quarter along with almost $15K in recent debt. Secretary of State candidate Diane Harris raised $6K, spent a bit over $4K and had a paltry $1,816.42 in the bank. Treasurer candidate Max Solomon, who ran as a write-in during the primary because the party failed to recruit anyone, raised less than $3K, reported no spending and ended the quarter with less than $8K. Comptroller candidate Bryan Drew raised $30K and received $47K in in-kind contributions from a company owned, ironically, by independent gubernatorial candidate Collin Corbett, spent less than $3K, ended with $54K and had $25K in debt from earlier this year.

Man, that’s just downright pathetic.

But I suppose it doesn’t really matter anyway unless we see a massive sea-change in national opinion in the coming months or the federal government finds a way to not certify certain election results. Regardless of where individual candidates are at this moment, they’ll have the money to compete. Unlike the Republicans, the Dems do have a pet billionaire (JB Pritzker) and, I assume eventually for most of them, organized labor.

The Republican legislative leaders have tried to scrape and claw as much as they can, but they’re vastly outgunned. Senate Republican Leader John Curran raised just $75K in the second quarter. He spent $71K and reported having a bit more than $3 million in the bank. His caucus committee reported having $160K in the bank.

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Leader Curran has three Republican-held districts to defend in the Chicago media market that have all trended Democratic in the last three cycles. Depending how bad things get, he could be defending a couple, two or three more.

The Senate Democrats have a ton of money to do whatever they want. Senate President Don Harmon has about $20 million in his personal campaign account and $1.7 million in his caucus account.

Over in the House, Republican Leader Tony McCombie has at least four Democratic-trending or swingy districts to defend and just $1.3 million in her personal campaign account and another $363K in her caucus account so far.

In contrast, House Speaker Chris Welch had $11.4 million in his personal account and $1.2 million in his caucus account. Like Senate President Harmon, he has more than enough money already, but more is never enough when there’s so much out there, so those numbers will likely rise by November.

Rich Miller also publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.

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Hillsboro grad, Springfield golfer Alex Eickhoff 2nd at state amateur

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Hillsboro grad, Springfield golfer Alex Eickhoff 2nd at state amateur


BLOOMINGTON — Springfield’s Alex Eickhoff nearly had a magical Thursday as he tied for second place in the 95th annual Illinois State Amateur Championship at Crestwicke Country Club.  

Eickhoff, a 2020 Hillsboro High School graduate and former standout on the Southern Illinois University Edwardsville’s men’s golf team, shot a 4-under-par 68 in Thursday’s third round and followed that with an even-par 71 to finish the three-day, four-round event 1-over 285. He tied for second with Bloomington’s Logan Stauffer.  

Eickhoff briefly took the lead through nine holes of his fourth round when he sat at 1-under par. Chicago’s Charlie Kulwin finished both of Thursday’s rounds under par and finished 2-under 282. He was the lone golfer to finish under par for the tournament.

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Eickhoff was The State Journal-Register’s Small School Boys Golfer of the year twice in his high school career: once as a freshman in 2016-17 and again as a senior in 2019-20. After high school, he golfed for the University of Minnesota for two years before transferring to SIUE.  

He began the tournament with a 3-over 74 on Tuesday and shaved off a stroke Wednesday with a 2-over 73. He closed out the event with an even-par 71 in Thursday’s final round.

Other area golfers who made the cut were Springfield’s Charles Hoogland (7-over 291, tied for 20th) and Jacksonville’s Brady Kaufmann (8-over 292, 25th). 

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The last golfer from The State Journal-Register’s coverage area to win the Illinois State Amateur was Jay Davis. Davis, a Jacksonville Routt graduate, won the 1991 and ‘92 tournaments. 

Contact Ryan Mahan: 788-1546, ryan.mahan@sj-r.com, Twitter.com/RyanMahanSJR.





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