TLDR Illinois Rep. Travis Weaver filed HB5814 to repeal taxes and rules tied to sports wagering and fantasy contests. The bill would remove the exchange wager transaction tax, which currently ranges from 1.75% to 3.5%. Fantasy contest operators would lose their privilege tax and licensing framework under the bill. Legal protection that shields fantasy contest players from gambling charges would also be removed. Illinois’ main 15% sports wagering tax and tiered privilege tax rates would stay unchanged.
Illinois Rep. Travis Weaver has introduced a new bill aimed at rolling back taxes and rules connected to sports wagering and fantasy contests. The legislation is called HB5814 and covers the 2025 and 2026 sessions of the 104th General Assembly.
The bill targets three main areas. These include the exchange wager transaction tax, the privilege tax on fantasy contest operators, and the rules that classify fantasy contests separately from gambling.
If passed, the bill would take effect right away. Weaver is a Republican lawmaker who has been active on gambling tax issues in recent weeks.
What Happens to the Exchange Wager Tax
Illinois currently taxes exchange wagers under the Sports Wagering Act. The rate starts at 1.75% per transaction.
That rate rises to 3.5% once a licensee processes more than five million exchange wagers in a single fiscal year. The money collected goes into the Sports Wagering Fund each month.
Weaver’s bill would strike this tax section completely. The definition of an exchange wager would remain in the law, but the tax attached to it would be gone.
An exchange wager covers agreements, contracts, or swaps tied to a sporting contest. These are often traded through prediction markets or exchanges.
The bill leaves the core sports wagering tax structure untouched. The 15% tax on adjusted gross sports wagering receipts stays