Shares of sports betting companies tumble following Illinois' approval of a tax increase
Tuesday 03 de June 2025 / 12:00
⏱ 2 min read
(Illinois).- Online sports betting stocks retreated Monday after Illinois lawmakers approved a budget that again raised taxes on wagers, heightening investor alarm that other states could follow suit.
DraftKings dropped 6%, while Flutter Entertainment shares fell more than 2%. The Roundhill Sports Betting & iGaming ETF (BETZ) pulled back by more than 1%.
Both chambers of Illinois’ state legislature passed a budget that includes a tax of 25 cents per wager on the first 20 million online sports bets made each fiscal year, rising to 50 cents per bet after.
Illinois Gov. J.B. Pritzker issued a statement saying he would sign the budget, according to local news reports.
Truist analyst Barry Jonas called the duties a last-minute surprise, adding that it’s the second straight year of the state slapped an unexpected tax on the industry. Under the latest plan, Jonas said Illinois’ rate will be among the highest in the country.
Jonas said DraftKings and Flutter’s FanDuel should both “certainly” surpass 20 million wagers, meaning they’ll face the higher tax rate on a portion of their bets.
But Jonas called the impact for smaller competitors in the market more “modest.” Still, shares of MGM Resorts, which owns the BetMGM platform through a 50/50 joint venture with Entain, declined 1.5%. Penn Entertainment, partners in the ESPN Bet platform, shed 0.3%.
Now, Wall Street is left wondering if other states will follow Illinois’ lead and try and plug their budget deficits by either adopting or increasing online sports gambling taxes.
Statewide levies on digital sports bets at the start of 2024 ranged from 51% in New Hampshire, New York and Rhode Island to 6.75% in states like Nevada and Iowa, according to a report from the Tax Foundation. Only 27 states and D.C. allow online sports betting statewide, according to the nonprofit.
Categoría:Sportsbook
Tags: Sin tags
País: United States
Región: North America
Event
SiGMA North America 2026
01 de September 2026
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(Mexico City, SoloAzar Exclusive).- The panel "The Red Pen Forum: Regulators Respond to the Industry," held during SiGMA North America 2026, brought together representatives from Uruguay, Argentina, Puerto Rico, and Honduras to analyze regulatory challenges, digital transformation, illegal gambling, and the need to adapt lotteries for new generations. The conference was moderated by Rodrigo Cigliutti, Executive Director of CIBELAE (Ibero-American Corporation of State Lotteries and Betting), and featured the participation of Marcelo Visconti, National Director of Lotteries and Quinielas of Uruguay; Carlos Moyano, President of IAFAS Entre Ríos, Argentina; Heidi Hernández Olivo, Deputy Secretary of the Puerto Rico Lottery; and Lissa Mencía, General Director of Lottery Operations and Games at Loto Honduras.
Monday 28 Sep 2026 / 12:00
SiGMA North America Addressed Crisis Management in iGaming
(Mexico, SoloAzar Exclusive).- During SiGMA North America 2026, Rosa Ochoa, founder of the Blue Global Gaming platform and strategic advisor for gaming operators; Iliana María Pineda Echeverri, Chief Legal & Compliance Officer at Wplay.co; Iraid Rosales, Country Manager Mexico at Amusnet; and Elizabeth Maya Cano, Executive President of CORNAZAR, analyzed the key factors in managing crisis situations within the iGaming industry, with a special focus on transparency, communication, technology, and preparation.
Friday 25 Sep 2026 / 12:00
Affiliates and Acquisition: Keys to Regulated Markets in North America
(Mexico City, SoloAzar Exclusive).- During SiGMA North America 2026, Cristopher Guzmán Reyes, Head of Affiliates at Logrand Entertainment Group; Guga Júnior, influencer and slots expert at Scalar Partners; Andrés Gómez, Head of Latin America Go-to-Market Strategy at Admattic; Yambot Aguilera, Gaming and Finance Sales Director at Google; and Paula Gabriel Jiménez, Advertising Client Growth Director for Microsoft at Aleph, analyzed the state and provincial affiliate ecosystem in North America, as well as the acquisition challenges in regulated markets.
Thursday 24 Sep 2026 / 12:00
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