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15% tax rate on sports gambling earnings in Illinois

1040-taxes
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PEORIA (HOI) -- Sports gambling became in March of 2020 in Illinois. Now, this upcoming tax season will be the first time people have to report earnings of $600 or more to be taxed at 15%.

Financial advisor, Nicholas Royer, MRFC, said sports betting is a business for some people and the state saw it as an opportunity to earn from it as well.

Royer said he knows people will not be happy with a high tax rate and this is just the beginning of the state looking for more streams of revenue.

"What happened is the state realized that 94% of sports gambling is now done online. And so they looked at this as, Oh, it's a revenue that we can create for ourselves now that this is actually happening," said Royer.

Now that Par-A-Dice Casino is open again, it gives players the opportunity for more earnings, betting in person and not just online.

"Illinois, is the fourth biggest in online gambling and sports betting right now in the country. Only behind Nevada, I think New Jersey and Pennsylvania," Royer continued, "So it's a pretty big deal and if we just look at September to October, just in that timeframe from September to October. There was a 42% increase in sports in sports gambling online."

Royer said anyone who might try and get away without filing their earnings have a good chance of getting caught due to tracking payments online through sports betting websites.

For more information visit the IRS's website.

Paige Blanzy

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