Illinois Senate Passes New Sports Betting Tax, Impacting DraftKings and Raising Taxes Over 140% in 2025

The Illinois Senate recently made a significant decision that will have a major impact on the sports betting industry in the state. The Senate passed a new sports betting tax that will raise sports betting taxation over 140% in 2025, affecting companies like DraftKings (DKNG).

Currently, the tax rate for sports betting in Illinois is 15%, but with this new legislation, it is set to increase to around 36%. This substantial increase in taxation is much higher compared to other legal sports betting states. DraftKings, which is legal in 25 states including Illinois, is expected to feel the effects of this tax hike.

DKNG stock had a strong start to the year, but has faced challenges in recent months. The news of the increased taxation caused the stock to drop over 10% after the announcement. DraftKings CEO and co-founder, Jason Robins, remains optimistic about the company’s future, emphasizing their commitment to innovation and operational excellence.

As investors and traders speculate on the future of DraftKings, there are differing opinions on how the company will fare in 2024. Some believe that DraftKings will be able to navigate the taxation storm and make up for lost profits through expansion in other states. However, others are more bearish, expressing concerns that Illinois’ tax increase could set a precedent for other states to follow suit.

The market volatility surrounding DKNG stock is expected to continue, with an implied move of +-$10.18 through January 2025. Investors are advised to stay tuned for real-time updates on DraftKings stock and more through Options Trading Concepts Live.

For those interested in market news and commentary, tastylive offers live daily programming and updates. Whether bullish or bearish on DraftKings, the future of the company remains uncertain as it navigates the challenges of increased taxation in Illinois and potentially beyond.