Recent figures released by the Illinois Gaming Board reveal a sharp decline in sports betting activity across the state. In Sept. 2024, Illinois introduced a new tax structure: $0.25 per wager on the first 20 million bets handled by each sportsbook, with the rate rising to $0.50 per wager beyond that threshold.

In reaction to the policy change, the state’s two dominant sportsbooks — FanDuel and DraftKings — implemented a standard $0.50 surcharge on customer bets, effectively shifting the cost of the tax directly onto bettors.

When comparing Sept. 2024 to Sept. 2025, the total number of bets made in Illinois dropped by five million, representing a 15% reduction year-over-year. (RELATED: Tom Brady Could Potentially Push Raiders In Direction Of Blockbuster Trade For Lamar Jackson)

Sports Betting Alliance president Joe Maloney expressed surprise at the magnitude of the decline.

“Mostly because this is the only jurisdiction across all 30 states with online sports betting where this is actually happening,” said Maloney, per WAND-TV.

Maloney emphasized that it’s highly improbable that a large number of bettors have simply quit wagering entirely. His primary concern is that many of those bets are continuing — just shifting to unregulated, illegal online platforms and traditional bookmakers.

According to data from @SBAllianceUS, new Illinois data shows the state has experienced 15% decreases in total bets in both September and October.

The Alliance points to the increases in the Illinois sports betting tax rate and per-bet fees as a reason why. pic.twitter.com/szsYlt66rO

— RLinnehanSR (@RLinnehanSR) January 12, 2026

“Any bettor with any level of sophistication is really paying attention to their costs, right?” said Maloney. “So, when you have the ability to have multiple competitive entrants in the legal regulated marketplace and then a myriad number of options in illegal or unregulated sites, you’re going to go for that best price.”

When placing bets through unlicensed or illegal operators, bettors have zero safeguards or recourse in the event of disputes, withheld winnings or fraudulent practices — one of the primary motivations behind the legalization and regulation of sports gambling.

“It was to protect consumers that were already doing this illegally,” said Maloney. “Bring them into transparent marketplaces where there are consumer protections, where there’s recourse. If you don’t get paid out your winnings, you have the opportunity to call a regulator, you have the opportunity to call an attorney general.” (RELATED: TaylorMade Hits Callaway With Lawsuit Over Alleged ‘Mud Balls’ Claims)

Another key motivation behind legalizing and regulating sports betting was to boost state tax revenue — a factor Maloney believes Illinois legislators should carefully weigh.

“Once the consumers flee this market, there’s no additional tax revenue to go to these important priorities that the state is clearly working on,” said Maloney.