§ 25-90 — Tax; Sports Wagering Fund

(a) For the privilege of holding a license to operate sports wagering under this Act until June 30, 2024, this State shall impose and collect 15% of a master sports wagering licensee's adjusted gross sports wagering receipts from sports wagering. The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee. The taxes levied and collected pursuant to this subsection (a) are due and payable to the Board no later than the last day of the month following the calendar month in which the adjusted gross sports wagering receipts were received and the tax obligation was accrued. (a-5) In addition to the tax imposed under subsection (a), (d), (d-5), or (d-7) of this Section, for the privilege of holding a license to operate sports wagering under this Act, the State shall impose and collect 2% of the adjusted gross receipts from sports wagers that are placed within a home rule county with a population of over 3,000,000 inhabitants, which shall be paid, subject to appropriation from the General Assembly, from the Sports Wagering Fund to that home rule county for the purpose of enhancing the county's criminal justice system. (b) The Sports Wagering Fund is hereby created as a special fund in the State treasury. Except as otherwise provided in this Act, all moneys collected under this Act by the Board shall be deposited into the Sports Wagering Fund. Through August 25, 2024, on the 25th of each month, any moneys remaining in the Sports Wagering Fund in excess of the anticipated monthly expenditures from the Fund through the next month, as certified by the Board to the State Comptroller, shall be transferred by the State Comptroller and the State Treasurer to the Capital Projects Fund. Beginning September 25, 2024, on the 25th of each month, of the moneys remaining in the Sports Wagering Fund in excess of the anticipated monthly expenditures from the Fund through the next month, as certified by the Board to the State Comptroller, the State Comptroller shall direct and the State Treasurer shall transfer 58% to the General Revenue Fund and 42% to the Capital Projects Fund. (c) Beginning with July 2021, and on a monthly basis thereafter, the Board shall certify to the State Comptroller the amount of license fees collected in the month for initial licenses issued under this Act, except for occupational licenses. As soon after certification as practicable, the State Comptroller shall direct and the State Treasurer shall transfer the certified amount from the Sports Wagering Fund to the Rebuild Illinois Projects Fund. (d) Beginning on July 1, 2024, and for each 12-month period thereafter, for the privilege of holding a license to operate sports wagering under this Act, this State shall impose a privilege tax on the master sports licensee's adjusted gross sports wagering receipts from sports wagering over the Internet or through a mobile application based on the following rates: 20% of annual adjusted gross sports wagering receipts up to and including $30,000,000. 25% of annual adjusted gross sports wagering receipts in excess of $30,000,000 but not exceeding $50,000,000. 30% of annual adjusted gross sports wagering receipts in excess of $50,000,000 but not exceeding $100,000,000. 35% of annual adjusted gross sports wagering receipts in excess of $100,000,000 but not exceeding $200,000,000. 40% of annual adjusted gross sports wagering receipts in excess of $200,000,000. (d-5) Beginning on July 1, 2024, and for each 12-month period thereafter, for the privilege of holding a license to operate sports wagering under this Act, this State shall impose a privilege tax on the master sports licensee's adjusted gross sports wagering receipts from sports wagering from other than over the Internet or through a mobile application based on the following rates: 20% of annual adjusted gross sports wagering receipts up to and including $30,000,000. 25% of annual adjusted gross sports wagering receipts in excess of $30,000,000 but not exceeding $50,000,000. 30% of annual adjusted gross sports wagering receipts in excess of $50,000,000 but not exceeding $100,000,000. 35% of annual adjusted gross sports wagering receipts in excess of $100,000,000 but not exceeding $200,000,000. 40% of annual adjusted gross sports wagering receipts in excess of $200,000,000. (d-7) Beginning on July 1, 2025, and each month thereafter, for the privilege of holding a license to operate sports wagering under this Act, this State shall impose a wager tax on each master sports licensee for each individual wager placed with the master sports licensee for sports wagering over the Internet or through a mobile application. The tax shall be based on the following schedule and shall be in addition to any other taxes or fees imposed under this Act: The tax shall be $0.25 per wager for the first 20,000,000 annual combined Tier 1 and Tier 2 wagers. The tax shall be $0.50 per wager for each wager in excess of 20,000,000 annual combined Tier 1 and Tier 2 wagers. The tax levied under this subsection shall be deposited monthly into the Sports Wagering Fund. The Board shall certify all amounts deposited into the Sports Wagering Fund under this subsection to the State Comptroller. The State Comptroller shall direct and the State Treasurer shall transfer that certified amount from the Sports Wagering Fund to the General Revenue Fund. As used in this subsection, "annual combined Tier 1 and Tier 2 wagers" means the total number of individual wagers placed with the licensee, regardless of outcome or payout in a given fiscal year. (d-10) The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee. (d-15) The taxes levied and collected pursuant to subsections (d) (d-5), and (d-7) are due and payable to the Board no later than the last day of the month following the calendar month in which the adjusted gross sports wagering receipts were received and the tax obligation was accrued. (e) Annually, a master sports wagering licensee shall transmit to the Board an audit of the financial transactions and condition of the licensee's total operations. Additionally, within 90 days after the end of each quarter of each fiscal year, the master sports wagering licensee shall transmit to the Board a compliance report on engagement procedures determined by the Board. All audits and compliance engagements shall be conducted by certified public accountants selected by the Board. Each certified public accountant must be registered in the State of Illinois under the Illinois Public Accounting Act. The compensation for each certified public accountant shall be paid directly by the master sports wagering licensee to the certified public accountant.

Legislative History

(Source: P.A. 103-592, eff. 6-7-24; 104-6, eff. 6-16-25.)