Illinois saw fewer March Madness bets after new sportsbook tax
Add Axios as your preferred source to
see more of our stories on Google.
The DraftKings Sportsbook outside Wrigley Field. Photo: Michael Reaves/Getty Images
Illinois gamblers placed fewer sports bets during March Madness this year, continuing a slowdown that online sportsbooks blame on the state's new online wagering tax.
Why it matters: March is typically one of the busiest months of the year for sportsbooks because of the NCAA men's and women's basketball tournaments.
By the numbers: Illinois residents placed 27% fewer wagers in March compared with a year earlier, according to Illinois Gaming Board data. That's roughly 10 million fewer bets.
- Total betting handle fell about 7% year over year to $1.39 billion.
Catch up quick: Illinois enacted a first-in-the-nation per-wager tax on online sportsbooks in September.
- Operators, including FanDuel and DraftKings, have since added transaction fees for customers in Illinois.
- DraftKings recently announced it would close its sportsbook attached to Wrigley Field, citing the state's tax structure.
What they're saying: The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook," DraftKings said in a statement.
Yes, but: The tax is still generating substantial revenue for the state.
- Illinois collected $57 million in sports betting taxes in March.
- About $11 million came from the state's new online wagering tax.
Flashback: Illinois took in $33.6 million in sports gambling tax revenue in March 2025, before the new tax was enacted, according to SportsHandle.
Zoom out: Illinois is the only state charging online sportsbooks a per-wager tax.
- The Sports Betting Alliance, an industry lobbying group, argues the policy is pushing gamblers back toward illegal bookmakers.
How it works: Illinois taxes online sportsbook operators $0.25 for the first 20 million wagers, then $0.50 for every bet after that.
The bottom line: Illinois' sports betting market slowed during March Madness after the state implemented its new wagering tax, even as tax collections increased.