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Bonus TL;DR
- HB 5811 proposes repealing Illinois’s tax and exchange-wager definitions on sports prediction markets without altering general sportsbook taxes.
- Filed by Rep. Travis Weaver, the unassigned bill comes amid ongoing federal lawsuits challenging Illinois’s prediction market regulations.
Illinois Rep. Travis Weaver has filed HB 5811, a bill that would remove exchange-wager provisions from the state’s Sports Wagering Act and repeal Illinois’ tax on sports prediction market wagers.
The proposal, filed Sept. 2, would roll back part of the state framework created in the FY2027 budget package. If enacted, it would eliminate Illinois’ statutory definition of an exchange wager, which currently covers contracts, transactions, agreements, or swaps offered through prediction markets and tied to sporting events.
Removing that definition would also remove the related tax. Under current law, Illinois charges platforms 1.75% on their first five million exchange wagers in a fiscal year and 3.5% on exchange wagers above that threshold.
HB 5811 would not change Illinois’ existing sportsbook tax structure. The state still applies a graduated tax of 20% to 40% on adjusted gross sports wagering receipts, along with a separate per-wager fee of $0.25 on an operator’s first 20 million annual wagers and $0.50 above that mark.
Bill targets prediction market rules, not broader sports betting taxes
The measure is narrowly focused on prediction market wagering language added earlier this year. In addition to creating the exchange-wager tax, Illinois’ FY2027 budget package also introduced state licensing requirements for prediction market operators.
According to the source report, HB 5811 remains in its introductory stage and has not been assigned to a committee. Weaver is a Republican member of the minority party in the Illinois legislature.
That means the bill is still at an early point in the legislative process, with no immediate change to state tax policy or operator requirements.
Proposal arrives during broader legal fight over prediction markets
The filing comes as Illinois is already involved in multiple legal disputes over whether state authorities can regulate prediction markets tied to sports events under federal commodities law.
The Commodity Futures Trading Commission sued Illinois in April, before lawmakers enacted the exchange-wager tax. After Gov. JB Pritzker signed the FY2027 budget package, the CFTC amended its complaint to challenge the new tax.
Kalshi filed its own lawsuit against Illinois in June, arguing that federal commodities law preempts the state’s regulatory requirements. The source report also said Coinbase is defending its interests in a separate case involving prediction market regulation.
For now, the immediate item to watch is whether HB 5811 receives a committee assignment and whether lawmakers move to revisit the prediction market tax and related exchange-wager provisions adopted in the state budget.
Source: As reported by Jonathan Rodriguez.
