Illinois lawmakers approve $56B budget with new prediction market tax
The Illinois General Assembly approved a $55.8 billion fiscal year 2027 budget that includes a new tax on prediction market trades, with one source specifying a 14.25% rate under budget bill SB 3019. The measure, finalized Monday, treats prediction markets similarly to regulated sports betting by imposing a per-trade levy and also creates a daily fantasy sports framework. Illinois Democrats had targeted prediction markets alongside cryptocurrency and fantasy sports as revenue sources during negotiations. A Kalshi spokesperson criticized the revenue projections as 'fake math from casinos' in remarks to RotoWire. The budget legislation now proceeds to the governor.
The tax gives Illinois a revenue hook that survives even if its parallel lawsuits against prediction markets fail, letting the state extract gaming-style proceeds from Kalshi and Polymarket regardless of whether federal preemption ultimately blocks criminal enforcement.