Illinois Representative Files Bill to End Sports Betting Tax

Illinois’ new budget for the fiscal year included a per-bet sports betting tax on prediction markets, a way to begin regulating prediction markets at the state level. Illinois Rep. Travis Weaver (R-Pekin) wants to put an end to that in the next legislative session.

Weaver has filed House Bill 5814, which would repeal the tax on “exchange wagers” signed into the budget in June. Illinois led the nation in adding a per-bet sports betting tax on traditional sports betting in 2025, leading Illinois residents to carefully choose where they bet. Prediction markets have avoided those fees until now, and Weaver wants to exempt them permanently.

The bill would also establish in Illinois that fantasy contests are legally not considered gambling. Daily fantasy leagues have long been considered games of skill rather than games of chance, which has allowed them to avoid multiple kinds of sports betting taxes. This bill would officially codify that into law in Illinois.

Weaver would face long odds to get his bill to become law. Illinois is a highly Democratic state, and that’s not expected to change after the election. Currently, the Democrats have a veto-proof majority in both the Illinois House and Senate, and incumbent governor JB Pritzker is expected to easily win re-election.

What Does the Sports Betting Tax Say?

When Pritzker signed the Illinois budget into law, he included a provision to tax prediction markets on a per-bet basis. Specifically, each wager carries a tax of 1.75% for the first 5 million trades placed in Illinois. After 5 million, the tax jumps to 3.5% per wager.

This reflects a per-bet sports betting tax on traditional sportsbooks, which has existed since 2025. In 2025, Illinois implemented a per-bet tax of 25 cents for the first 20 million wagers, doubling to 50 cents after that threshold. That led sportsbooks to pass costs on to bettors, which led bettors to cut back on their wagers in the state. In practice, sportsbooks have either installed higher minimum bets or charged customers the state fee in order to place their wager.

Prediction markets have grown in popularity in part because they don’t carry these taxes. Currently, they operate under federal law, although that question might soon be answered by the Supreme Court. Until then, states have come up with different ways to fight back, with this attempt being unique to Illinois.

Does the Bill Have a Realistic Chance?

Most likely, no. This isn’t the first time Illinois has debated repealing a sports betting tax. In 2025, Rep. Daniel Didech (D-Buffalo Grove) filed House Bill 5143, which would have ended the per-bet tax on July 1, 2026. The bill died in committee in March 2026.

Weaver wants to force his bill to be debated during the veto session. That takes place after the election, in mid-November. That ensures that the current makeup of the Illinois legislature will be the ones debating this bill. Based on history, that limits Weaver’s chances of success.

Even if he gets his entire party to side with him, he would need to convince 20 House Democrats just to get the bill through the General Assembly’s lower chamber. The bill almost certainly would not survive Pritzker’s veto, requiring a 3/5 majority to override him.

What Dates Are Important to Watch?

The Illinois veto session begins on Nov. 17, two weeks after the election. Illinois certifies elections three weeks after they take place. But by this time, all but the closest races will know their winners for certain.

That could affect the mood of killing a sports betting tax. If Democrats have the night they expect and Pritzker is re-elected, Weaver’s bill likely has no chance to succeed. If Republicans have a stronger showing than anticipated, the Illinois legislature might be more inclined to consider his bill.