Illinois Sports Betting Tax Calculator
Illinois taxes gambling winnings as ordinary income at 4.95% flat rate. Sports betting is legal (online and retail) in Illinois with operators including FanDuel, DraftKings, BetMGM. One of the largest sports betting markets. Player registration now available online (previously in-person only).
Calculate Your Illinois Sports Betting Tax
2026 rules: 90% loss deduction cap applies (OBBBA)
Your salary, wages, and other non-gambling income
Losses can only be deducted if you itemize deductions
You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.
Tax Breakdown
W-2G Form: Likely Required
Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.
Federal Withholding
$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.
Illinois Gambling Tax Key Facts
- ✓State income tax: 4.95% flat rate
- ✓Sports betting: legal (online and retail)
- ✓Available sportsbooks: FanDuel, DraftKings, BetMGM, Caesars, BetRivers, PointsBet, Fanatics
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓4.95% flat income tax rate
- ✓Graduated operator tax introduced 2024
- ✓One of the highest-handle states
How Sports Betting Taxes Work in Illinois
Illinois taxes gambling winnings as ordinary income at a flat 4.95% rate. Your gambling winnings are added to all other income and taxed accordingly.
Illinois allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.
Illinois Allows Gambling Loss Deductions
Illinois follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Illinois Tax Example
A single filer in Illinois earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Illinois
You must be physically located within Illinois to place bets on these platforms.
Recent Illinois Gambling Tax Changes
One of the largest sports betting markets. Player registration now available online (previously in-person only).
Illinois Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Illinois?
Illinois taxes gambling winnings at 4.95% flat rate on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.
Is sports betting legal in Illinois?
Yes, sports betting is legal (online and retail) in Illinois. Licensed operators include FanDuel, DraftKings, BetMGM, Caesars, BetRivers, PointsBet, Fanatics. You must be physically located within Illinois borders to place bets.
Can I deduct gambling losses in Illinois?
Yes, Illinois allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.
Illinois Tax Authority
For official tax guidance specific to Illinois, contact the state tax authority:
https://tax.illinois.gov/↗Calculate Your Illinois Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Illinois.
Full Tax Calculator