Sports betting tax becomes battleground between Chicago and Illinois lawmakers — CDC Gaming

Chicago’s steep new tax on sports betting is creating a backlash in Springfield that could lead to new restrictions on whether municipalities should have the power to tax gambling revenue.

The highly contested tax charges sports betting businesses 10.25% on their net gambling revenue. The tax, which took effect Jan. 1, is in addition to the state’s existing levy on sports gambling, which includes per-bet fees. The combination gives Illinois one of the most severe betting tax structures in the country.

As Illinois begins Problem Gambling Awareness Month, state representatives from both sides of the aisle say the tax will drive bettors to illegal markets, hurting revenues for Illinois.