Illinois Gov. J.B. Pritzker (D) is pushing to spice up the state’s sports activities betting tax to 35% from 15% to lift wanted money and that’s to not the liking of the gaming trade, which one group says is using “doubtful claims” in a bid to defeat the governor’s plan.
Illinois Gov. JB Pritzker indicators a invoice in August 2023. The Marketing campaign for Fairer Playing (CFG) says “doubtful” techniques are getting used within the battle towards Prizker’s try to lift sports activities betting taxes. (Picture: AP)
The Marketing campaign for Fairer Playing (CFG), an impartial wagering reform group, asserts that in its effort to keep off Pritzker’s proposal of upper taxes on sports activities wagering, the Sports activities Betting Alliance (SBA) is utilizing drained practices and “has not substantiated its claims.”
It’s no feat of power to push a fantastical narrative, then gather signatures and proclaim a mandate,” mentioned CFG founder and funder Derek Webb in an announcement. “World playing conglomerates are professional at positioning sports activities betting as a foot within the door earlier than the actual floodgates inevitably open. Sports activities betting typically serves as a gateway to slots and desk video games down the road, as a result of they bring about in much more income — to not point out hurt.”
CFG believes that signatures collected in a petition drive orchestrated by SBA might have been acquired underneath false pretenses. Amongst gaming corporations, the Sports activities Betting Alliance is supported by BetMGM, DraftKings, FanDuel, and Penn Leisure, amongst others.
CFG Refutes SBA’s New York, Pennsylvania Comps
Ought to Illinois implement a 35% levy on sports activities wagering, it’d be the third-highest charge within the nation amongst giant states trailing solely Pennsylvania (36%) and New York (51%). Final yr in Illinois, bettors wagered $11.6 billion on the state’s on-line and retail sportsbooks with operators producing a maintain of 8.6%, sending receipts of $150 million to the state.
That 8.6% maintain is barely above the nationwide common of 8.4% highlighted by CFG, however the group believes SBA’s claims that odds supplied to bettors and thus maintain can be adversely affected by larger Illinois taxes. CFG says that situation hasn’t performed out in New York.
“New York’s larger tax charge has not affected maintain, which might shift if odds shifted. This can be a direct refutation of SBA’s declare that larger taxes would result in worse odds for gamers,” noticed CFG.
Delaware, New Hampshire, and Rhode Island additionally tax sports activities wagering at 51%.
iGaming Pitched as Different to Sports activities Betting Tax Hike
Although indirectly talked about by CSG, SBA members have supplied up iGaming as a compromise to Pritzker’s proposed sports activities wagering tax improve. The gaming corporations imagine that on-line casinos would unleash a brand new income stream for Illinois.
A latest examine by SBA famous that land-based on line casino income in Illinois, Louisiana, Maryland, New York, and Virginia would modestly improve if iGaming was permitted in these jurisdictions. That was probably an effort to allay fears that on-line casinos might cannibalize brick-and-mortar counterparts.
Whereas SBA claimed iGaming would create $750 million in new income for Illinois, or greater than triple the quantity that might be raised from rising the sports activities wagering tax, the state isn’t speeding to advance on-line on line casino laws.
Nonetheless, Illinois wants money. For the fiscal beginning July 1, the state is anticipated to have a funds deficit of $891 million, or $721 million when accounting for a $170 contribution to the “wet day” fund. That will mark the state’s first deficit in 4 years. Pritzker’s most lately proposed funds requires $52.7 billion in spending, up from $40 billion in 2019.
