Illinois Online Sportsbooks 2026
Illinois has become the most complicated tax jurisdiction in US sports betting, stacking a graduated 20-40% revenue tax on top of a new per-wager fee that took effect in July 2025.
Overview
- Launched: March 9, 2020
- Regulator: Illinois Gaming Board (IGB)
- Revenue tax: Graduated 20% to 40% on AGR (effective July 1, 2024)
- Per-wager tax: 25 cents first 20M bets, 50 cents thereafter (July 1, 2025)
- In-person registration: Removed in March 2022
Illinois legalized sports betting under the Sports Wagering Act of 2019, and the first retail bet landed at Rivers Casino in March 2020. The in-person registration requirement frustrated early adopters but was permanently repealed in March 2022, unlocking the full mobile market.
Regulatory Backstory
The Illinois Gaming Board licenses master and management sports wagering operators. In June 2024, Governor JB Pritzker signed HB 4951 replacing the flat 15% AGR tax with a graduated scale running from 20% on the first $30 million of AGR up to 40% above $200 million. A year later, the FY26 budget added a per-wager tax effective July 1, 2025: 25 cents per online wager for the first 20 million wagers per licensee per year and 50 cents per wager thereafter.
Current Market Landscape
Illinois online sportsbooks paid more than $5.2 million in per-wager tax during July 2025, the fee's first month, according to IGB reports. By September 2025, combined AGR tax and per-wager revenue hit $27.8 million in a single month, and Illinois collected roughly $99 million in betting tax during the first quarter of FY26. Several operators, including DraftKings and FanDuel, responded by adding small transaction fees on customer bets or raising minimum bet sizes.
What Makes This State Different
Illinois is the only US state that layers a graduated AGR tax on top of a flat per-bet fee. That combination pushes the effective tax burden on top-tier operators well above the 40% headline rate and has reshaped how operators price promos and accept small-stakes wagers.
How to Sign Up
Bettors must be 21+, physically located in Illinois, and provide ID and SSN for verification. Registration is fully remote. Note that some operators have begun adding a per-bet transaction fee on Illinois wagers; read the slip before confirming.
2026 Outlook
Expect continued lobbying over the per-wager fee and ongoing debate over whether Illinois has reached the point where extra layers of taxation would push even more casual bettors away from small wagers. If smaller books cannot absorb the cost, additional operator consolidation remains plausible.
Responsible Gaming Resources
If gambling is causing harm, Illinois directs residents to 1-800-GAMBLER, text GAMB to 833234, or visit AreYouReallyWinning.com for free, confidential support. IGB's Self-Exclusion Program now covers every Illinois casino and sports wagering operator, still requires in-person enrollment at sanctioned sites, charges no enrollment fee, and routes SEP questions through the online inquiry form or the SEP office at (312) 814-8832 or 1-877-968-7848.
The Bottom Line
Illinois remains the nation's third-largest sports betting market by handle, but the combined graduated and per-wager taxes make it an increasingly expensive place to operate. Bettors should expect promo shrinkage and per-bet fees to persist through 2026.