New York definitely raised eyebrows when it implemented nearly three years ago a 51% tax on sports betting revenue, a rate far above most other states that have pursued legalization. But after nearly $2 billion in collected tax revenue from sports wagering in the Empire State just since online sports formally began there in January 2022, other states are moving quickly to increase their tax rates and garner money they believe has been left on the table.

The Illinois state legislature, after declining to move on a separate issue around the Bears’ stadium funding, this week approved a budget that increased the sports betting tax from the prior flat 15% rate to a progressive scale of 20–40%, depending on the level of adjusted gaming revenue that a particular sportsbook generates. That top rate in Illinois is now the second-highest level in the country, trailing New York and an identical 51% in New Hampshire and Rhode Island as well.