Higher Taxes, Fewer Bets: Illinois Feels the Fallout

The adage is that if you want less of something you tax it. If you want more of something you subsidize it. It’s a good rule of thumb when you hear voices in Springfield, Illinois - or any taxing body, talking about raising taxes on this, that, and everything else.

Illinois state Capitol in Springfield

Illinois has spent wild amounts of money it doesn’t have. Promised money to people for decades on the idea that there will always be more to tax as everything grows. Logic though suggests that there is a tipping point, and the state is living through it. Property taxes across the state are high enough that home ownership in many areas is a big financial hurdle, and people have moved away. Gas taxes have been raised practically every year over the last seven to eight years, and people drive out of state to fuel up. The reactions to the ever-increasing taxes have cost the state money. Can Illinois learn the lesson?

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In recent years the Land of Lincoln has turned to vice for additional tax revenue. The state legalized medicinal and recreational marijuana, it also legalized sports gambling with the idea that new money would flow to Springfield to help cover all the money that has already been spent. With more neighboring states also legalizing marijuana and sports gambling, competition comes into play. Competition includes pricing, and doing business in Illinois is - surprise - expensive.

Sports gaming has been spreading state by state across the USA

New data is showing that new taxes on sports bets may very well be the main reason that sports wagers placed in Illinois have decreased. How much? In September, year to year, revenue was down fifteen percent, due to 5 million fewer bets. That’s not small. Offshore sports betting is still a thing. You may still have a guy (a bookie) who’ll take a sports bet. Also, the neighborhood marijuana connection is still in business. Why? Costs, in many cases it is still more affordable to go the old route instead of the ever-increasing cost of dealing with the state.

Illinois' answer is always more taxes (and fees and fines)

Is anyone taking bets on how soon the state of Illinois figures the market out, and reduces taxes to get more monetary activity happening?  --Oh, and lowers state spending to lessen the burden on taxpayers. Make it a parlay.