Hard Rock launched its Hard Rock Bet mobile app this Monday in Illinois, just days ahead of the grand opening of Hard Rock Casino Rockford, scheduled for Thursday, August 29.
The mobile app is now available statewide, for mobile devices running on iOS and Android. Besides Illinois, it is live in several other states, including Arizona, Indiana, Florida, Ohio, Tennessee, and Virginia. Mobile bettors will have access to pre-game and live betting options, as well as multiple parlay wagers.
Geno M. Iafrate, President at Hard Rock – Rockford, Illinois, commented on the new mobile and in-person betting offerings available in Illinois: “The launch of Hard Rock Bet on mobile and in-person sports betting is another milestone for the Hard Rock brand in Illinois, one that adds to the complete array of entertainment options for our guests.”
He added that guests of the land-based casino would be able to enjoy live music, an array of food and beverage options, as well as various table games, and bets on sports events “all under one roof.”
The Illinois sports betting market is the third largest by revenue in the US. That being said, it is an increasingly difficult marketplace for operators to gain access to, especially considering the scaled tax rate of up to 40% that is already in place.
Illinois Legislators Introduce Progressive Gambling Tax Rate of up to 40%
Since online sports betting went live in Illinois in June 2021, gambling operators have been subjected to a tax rate of 15%. In June, this has generated $13.8 million in tax revenue. Over the current year, Illinois Governor Jay Robert Pritzker has proposed amending the state’s tax rate structure from a flat to a progressive one, based on particular revenue thresholds. Subsequently, Illinois senators endorsed a 2025 budget that included a progressive wagering tax of up to 40%.
Gambling operators will fall into several tax brackets based on their Adjusted Gross Revenue (AGR). AGR of up to $30 million will be taxed at 20%. Businesses with sports betting receipts between $30 million and $50 million will be taxed at 25%. AGR between $100 million and $200 million will be subject to a 35% tax rate. The highest rate of 40% will apply to AGR of over $200 million.
FanDuel and DraftKings would be the two operators affected by the highest tax rate of 40%. The Sports Betting Alliance (SBA), an organization of leading sports wagering operators, including the said sportsbooks, plus Fanatics Sportsbook and BetMGM, called the decision “extremely disappointing”. In a statement, SBA members said they could reevaluate their Illinois operations.
The new system, which became effective on July 1, sets a precedent, making Illinois the first state with an entirely progressive sports betting tax rate. It aligns with the ultimate goal of policymakers to maximize state revenue from an industry developing at a fast pace. The maximum rate of 40% will be the second highest in the US, following New York’s 51% tax.
