Illinois wagering-tax share rose 19.2% to $2.662 billion

Illinois’ state-designated share of wagering-tax revenue reached $2.662 billion in fiscal 2026, a 19.2% increase from the previous year, according to the Illinois Commission on Government Forecasting and Accountability. The increase was $428 million.

The commission reported $2.234 billion for fiscal 2025. Its figures distinguish the state’s share from additional local-government receipts, so the $2.662 billion total is not a combined tally of state and local collections.

The commission also reported $1.013 billion in state video-gaming tax revenue and $788 million in lottery sales revenue for FY 2026. Those are differently labeled categories, not like-for-like measures. Capitol News Illinois reported that video gambling revenue exceeded lottery revenue for a second consecutive year.

Sports wagering accounted for more than $15 billion in bets, or handle, during FY 2026, Capitol News Illinois reported. The state collected $593 million in sports-wagering taxes from more than 319 million wagers; nearly 99% of the wagers were online. Handle measures the amount wagered, while taxes are a separate revenue measure.

The outlet also reported that parlay bettors’ net losses totaled $879 million, nearly 62% of sports-betting losses. That figure describes reported bettor losses, not tax receipts. The revenue and betting figures do not by themselves establish whether gambling-related financial or health outcomes improved or worsened.

Preliminary ruling leaves exchange-wager fees unresolved

In a separate development, U.S. District Judge Martha M. Pacold on Oct. 2 granted preliminary-injunction motions in part and continued them in part in related cases involving Coinbase, Kalshi, the United States and the Commodity Futures Trading Commission. The cases concern Illinois controls as applied to certain sports-event contracts traded on federally designated markets.

At this preliminary stage, the opinion found the plaintiffs likely to succeed, at least in part, on claims that federal law preempts specified Illinois licensing and trading controls for the covered contracts. The opinion discusses rules affecting which contracts may be offered, as well as restrictions on where and to whom they may be offered. The ruling is limited to the claims and contracts addressed in the opinion; it does not establish that every prediction-market operator is protected.

The court did not decide whether Illinois’ exchange-wager fee provisions are preempted and directed further targeted briefing on that question. The opinion discusses fees of 1.75% on the first five million exchange wagers in a fiscal year and 3.5% on subsequent exchange wagers in that year.

Illinois officials argued that unregulated sports wagering raises concerns about addiction and its appeal to young people. The opinion’s preemption analysis treated those policy considerations as matters Congress assigned to the Commodity Futures Trading Commission; it did not find that gambling-related harms do not exist.

The Oct. 2 order is preliminary, not a final decision in the lawsuits. It granted the named plaintiffs relief at this stage on specified controls while leaving the fee question for further consideration.