The latest figures from the Illinois Gaming Board (IGB) reveal an unusual shift in the state’s sports betting market for September 2025: a sharp decline in the total number of wagers, juxtaposed against an unexpected rise in the overall handle.
This dynamic is a direct consequence of the new per-wager tax introduced by the state, prompting major operators to implement customer surcharges and immediately altering betting behavior.
In September, Illinois sportsbooks processed approximately 30.2 million online wagers, marking a 15 percent drop from 35.7 million a year earlier, a difference of over five million fewer bets.
However, despite this significant reduction in transaction volume, the overall handle surged, demonstrating a 9 percent rise to reach $1.42 billion. Flutter CEO Peter Jackson confirmed the trend matched expectations, noting that the surcharges effectively push customers toward placing fewer, but individually larger, wagers.
The increased financial burden on operators directly led to a massive increase in state tax collection. The IGB confirmed that the state collected $10.5 million from the per-wager tax in September alone, surpassing the combined totals from July and August.
Operators FanDuel and DraftKings crossed the 20 million annual bets threshold in September, doubling their per-wager fee to 50 cents.
Their combined surcharge output accounted for more than 80 percent of the state total, with FanDuel contributing nearly $4.5 million and DraftKings contributing almost $4.1 million.
This new cost structure has cemented Illinois’ reputation as one of the costliest sports betting markets in the United States. In addition to the per-wager tax, Illinois applies a progressive Adjusted Gaming Revenue (AGR) tax that reaches up to 40 percent, more than triple its previous flat rate.
The AGR figures reflect the new surcharges, which are now included in the reported revenue and tax calculations. In September, online sportsbooks posted $100.7 million in AGR, down 26.2 percent year over year.
As per the Illinois Gaming Board, the state collected $27.8 million in total betting tax revenue for the month. Looking ahead, the proposed 10.25 percent city-level tax in Chicago threatens to add another layer of significant cost, forcing a market adjustment under intense financial pressure.
