**Chicago’s Sports Betting Tax Faces Pushback in Illinois General Assembly**
In Short
A new 10.25% tax on sports bets in Chicago is facing opposition from Illinois lawmakers, who are supporting bills that would prevent municipalities from setting their own sports wagering taxes.
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The city of Chicago’s new 10.25% tax on sports bets is facing pushback in the Illinois General Assembly, with lawmakers supporting bills that would block Chicago and other municipalities from setting their own sports wagering taxes.
The tax, which was approved by the Chicago City Council in October, is set to go into effect on March 5. However, two bills currently making their way through the Illinois legislature, House Bill 3142 and Senate Bill 1760, would prohibit municipalities from imposing their own taxes on sports wagering.
House Bill 3142, sponsored by Rep. Bob Rita, a Democrat from Blue Island, would establish a uniform tax rate of 15% on sports wagering for the entire state. The bill passed the House Executive Committee on Wednesday and is now headed to the full House for consideration.
Senate Bill 1760, sponsored by Sen. Dave Syverson, a Republican from Rockford, would also establish a statewide tax rate of 15% on sports wagering, and would prohibit municipalities from imposing their own taxes on the activity. The bill passed the Senate Executive Committee on Tuesday and is now headed to the full Senate for consideration.
Supporters of the bills argue that a uniform tax rate would create a more level playing field for businesses offering sports wagering and would prevent a patchwork of different taxes across the state. They also argue that the 15% tax rate would generate more revenue for the state than the 10.25% tax rate approved by Chicago.
However, opponents of the bills argue that the city of Chicago should have the ability to set its own tax rate for sports wagering. They argue that the city has a significant financial need for the revenue that the tax would generate, and that the city should have the autonomy to make its own decisions about how to tax and regulate the activity.
The debate over the sports betting tax comes as the Illinois sports wagering market continues to grow. According to the Illinois Gaming Board, the state’s sportsbooks took in $581.6 million in wagers in November, a new record for the state. The state’s sportsbooks have taken in more than $4.5 billion in wagers since the activity was legalized in March 2020.
It remains to be seen how the Illinois General Assembly will ultimately decide the issue of the sports betting tax. However, with both House Bill 3142 and Senate Bill 1760 making their way through the legislature, it is clear that the debate over the tax will continue to be a hot topic in Springfield in the coming weeks and months.
Source: Shaw Local Enewspapers
