In reaction to per-wager fees and minimums imposed by gaming companies, bettors in Illinois made five million fewer bets in September than they did a year earlier, according to the Sports Betting Alliance (SBA) of Illinois, a trade group that supports sportsbook operators in the state.

The minimum wager requirements and transaction costs imposed by operators in response to the state's most recent sports betting tax increase—25 cents per bet on the first 20 million bets booked, with that amount doubling to 50 cents for every bet after 20 million—were first applied to bettors in the Midwest state in September.

"When compared to September 2024, the September 2025 data shows that 5 million fewer bets were placed in Illinois — or a 15% decrease,” said the Sports Betting Alliance of Illinois, citing data from the Illinois Gaming Board (IGB).

While DraftKings, Fanatics, and FanDuel charge Illinois gamblers on a per-bet basis, the majority of the state's operators choose minimum bet sizes, which are always modest.

Handle Is Not Affected by the Illinois Sports Betting Tax

The Illinois tax increase was previously criticized by the SBA, which claimed it would drive bettors offshore and result in lower state income. While it is true that fewer bets were placed overall in Illinois in September, handle, or the total amount of money wagered on sports, did not decrease.

According to IGB data, tier one and tier two online sports betting handles were valued at $434.5 million and $782.3 million, respectively, in September. These amounts were $416.8 million and $676.7 million in September 2024.

However, the SBA is right about at least one point: Illinois's online sports wagering taxes are among the highest in the nation due to the state's 2024 progressive tax rise and this year's per-bet levy.

“Coupled with Illinois’ 2024 graduated tax, the state’s per-wager tax has made the taxes paid by legal sports betting customers here one of the highest in the country while the unregulated, illegal market is rapidly expanding – without any consumer protections and without any oversight,” said the trade association.

A city-specific sports betting tax is being considered by financially challenged Chicago to increase revenue, but it appears that Springfield politicians are opposed to the idea.

The Place of Prediction Markets

The SBA of Illinois made no mention of prediction markets in its statement, which may come as a surprise given the excitement surrounding sports event contracts. It's also unclear whether the five million-bet attrition in Illinois that the group stated was caused by the event contract platforms.

Industry insiders, however, speculate that DraftKings and FanDuel may be sending a message to high-tax states like Illinois to either compromise on more accommodating tax structures or negotiate on iGaming, given that they are getting ready to offer contracts for sporting events in states where sports betting is prohibited.

But for now, that's just conjecture.