The bookies who cried ‘Wolf’
Thursday, Jan 16, 2025 - Posted by Rich Miller
* Remember when FanDuel and DraftKings were threatening to pull out of Illinois? This is from June…
Illinois legislators have called the bluff of online sports betting companies that are suggesting they might reduce operations — or close up shop in the state altogether — after being slapped with a higher graduated tax system in Gov. J.B. Pritzker’s latest budget.
FanDuel and DraftKings will soon see their net revenue taxed on a scale that tops out at 40% under the spending plan passed by the Illinois General Assembly last week. That’s up from the 15% flat rate levied against sportsbooks since the now $1 billion Illinois industry launched in 2020. […]
Sports Betting Alliance president Jeremy Kudon said the new rates “counterproductively penalize sports betting operators who invested millions into the local economy and created jobs in the state” — and it leaves them “no choice but to” reconsider their Illinois operations.
“This tax hike doesn’t just threaten the legal, regulated sports betting market — it will have devastating effects for operators’ in-state partners, including the most vulnerable downstate casinos, who rely on sports betting revenue to create jobs and invest in communities,” Kudon said.
* Well, they didn’t leave and they’re thriving…
Sports betting records continued to fall in Illinois in late 2024.
The Illinois Gaming Board reported a November handle of $1.53 billion, the most ever wagered for the second consecutive month. Sports betting operator revenue of $154.6 million also set a new monthly high and eclipsed the previous record of $137.2 million from September 2024. […]
DraftKings set Illinois monthly records with a $527.1 million handle and revenue of $57.3 million. FanDuel wasn’t far behind with $512.4 million in wagers and $54.7 million in profits, the most it has ever hauled in as an Illinois operator. […]
Sports betting operators have already produced 27% more revenue in 2024, thanks to 22% more wagers and a slightly higher hold than in 2023. The state has collected over $228 million in tax revenue through November.
More here.
- Galena Guy - Thursday, Jan 16, 25 @ 11:25 am:
Tell that to Andrew Chesney, who was aghast at all those poor put upon sports books.
- Sox Fan - Thursday, Jan 16, 25 @ 11:28 am:
Same reason that Chicago should refuse the property tax incentive for the new casino. They’ll ultimately pay whatever they need to to stay open. These businesses thrive on some of the most vulnerable people in our society, we should not be offering them any sort of break.
- Excitable Boy - Thursday, Jan 16, 25 @ 11:28 am:
But, Econ 101…?
- I-55 Fanatic - Thursday, Jan 16, 25 @ 11:33 am:
Hearing sports betting companies say things like “invest in communities” is offensive. They aren’t investing in communities, they’re a leech on them. As long as it’s legal to carry around a casino in your pocket, FanDuel and DraftKings ought to be taxed to the Stone Age.
- Riverbender - Thursday, Jan 16, 25 @ 11:37 am:
Just wondering, the article refers to ” in-state partners, including the most vulnerable downstate casinos.” I did not see a breakdown of the downstate numbers and was wondering if there are any available? Did I overlook them perhaps?
- charles in charge - Thursday, Jan 16, 25 @ 11:48 am:
I still find it perplexing how, virtually overnight and with very little dissent, sports betting was transformed from a criminalized activity to a legitimate mainstream industry that is marketed ubiquitously on every conceivable platform, despite all the well-documented harm associated with gambling. Meanwhile, ending the disastrous war on drugs or decriminalizing sex work are still considered radical and politically perilous policies by so many elected officials.
- VK - Thursday, Jan 16, 25 @ 11:54 am:
I am shocked to discover there is gambling happening in this establishment and it’s doing as fine as it has for all of human history. Shocked I say.
- TNR - Thursday, Jan 16, 25 @ 11:59 am:
== most vulnerable downstate casinos ==
DraftKings’ online license is tethered to the Casino Queen in East St. Louis and FanDuel’s is tethered to the Fairmont Park racetrack in Collinsville. So technically if sports waging declined (which it clearly hasn’t) those downstate facilities could have been negatively impacted. I imagine it’s available somewhere, but I don’t recall seeing what the profit-sharing or fee-paying agreement is like between the bookies and the casino/track.
- JS Mill - Thursday, Jan 16, 25 @ 12:08 pm:
Reminds me of when sheriffs claimed we would be overrun by chinese gangs is pot was legalized.
- Captain Obvious - Thursday, Jan 16, 25 @ 12:22 pm:
It sounds like they can easily withstand another round of tax increases and the state is facing a deficit this year. Wonder what we should do about that…
- charles in charge - Thursday, Jan 16, 25 @ 12:25 pm:
==Reminds me of when sheriffs claimed we would be overrun by chinese gangs is pot was legalized.==
Jamaican gangs too. And the drug-sniffing dogs were all going to be euthanized. Yet today these people somehow seem to have more influence than ever with a lot of legislators. It’s baffling.
- DS - Thursday, Jan 16, 25 @ 12:42 pm:
Looks like the state didn’t hike the tax enough.
- thisjustinagain - Thursday, Jan 16, 25 @ 1:15 pm:
Next the e-bookies will warn about health, safety, and environmental laws being ‘too expensive’ to comply with. (Snark). Big business is always the same…
- We've never had one before - Thursday, Jan 16, 25 @ 1:31 pm:
At the bottom of the video ads for FanDuel (TV/web) is the helpful hint who to contact “If you have a gambling problem…”
If you have the FanDuel app on your phone, you already have a problem!
- Lincoln Lad - Thursday, Jan 16, 25 @ 1:38 pm:
I admit to using the online sites and have my own thoughts. I think that the two mentioned here have shifted their promotions to riskier bets for the bettor. They are seeking to draw bettors to higher risk bets, bets they are more likely to lose. Just my opinion, if that’s worth anything.
- H-W - Thursday, Jan 16, 25 @ 2:51 pm:
=== [the news tax will] penalize sports betting operators who invested millions into the local economy and created jobs in the state ===
So, how many jobs were created before the tax and in which localities exactly, and how many of those (fictitious?) jobs were lost with the new tax?
I mean, if you are going to makeup a story, you need to be consistent with that story if you want people to believe you are credible.
- anon2 - Thursday, Jan 16, 25 @ 3:08 pm:
Whenever there’s discussion of a millionaire’s surcharge, we hear the same kind of dire predictions as the sport gambling industry used to resist higher taxes.