reached wagering AGR of $ 30m , so it ’ s likely that going forward , all will be taxed at 20 %.
SMALLEST OPERATOR WOULD STILL SEE A 20 % INCREASE
On the digital side , DraftKings ($ 350m ) and FanDuel ($ 421m ) exceeded the $ 200m threshold for FY2024 . Under the new plan , both would be taxed up to 40 %, a more than 140 % increase . No other operator had AGR that surpassed $ 100m . The other six operators would also see their tax burden increase ( see Fig 1 , right ).
Even smaller operators will feel the pinch . Chicago-based Rush Street Interactive ( RSI ) will see its tax burden double – from 15 % to 30 % – under the new plan . According to Truist analysts , in FY2023 , RSI would have paid an additional $ 12m in taxes on its AGR . For FanDuel and DraftKings , the numbers are eye popping . FanDuel would have paid an additional $ 102m in taxes and DraftKings an additional $ 78m .
The Sports Betting Alliance ( SBA ), comprised of BetMGM , DraftKings , Fanatics and FanDuel , went beyond what Fluharty had to say .
“ It ’ s also a subsidy to bookies and the illegal market : legal operators have just started to make serious inroads into Illinois ’ robust illegal sports betting market ,” the SBA said in a statement . “ Worse odds , no promotions , worse product all give the offshore illegal market apps ( which pay no tax ) a
Fig 1 : Operators ’ new Illinois tax rate
Operator AGR New tax rate
FanDuel $ 421m 40 % DraftKings $ 350m 40 % BetRivers $ 81m 30 % Fanatics $ 51.7m 30 % BetMGM $ 44m 25 % Penn / ESPN $ 42.3m 25 % Caesars $ 36.1m 25 % Circa $ 880k 20 %
iGB L ! VE 2024 • ISSUE 136 • 83