Overview
- The Sports Betting Alliance dropped its request for an emergency restraining order after Chicago granted municipal licenses on Dec. 31, avoiding a New Year shutdown.
- The coalition’s lawsuit continues, arguing the city lacks constitutional authority to impose revenue-based licensing and a local tax on online wagering without express state delegation.
- Chicago’s 2026 budget imposes a 10.25% levy on adjusted gaming receipts from bets placed in the city and adds annual operator fees ranging from $5,000 to $50,000.
- City officials project about $26.2 million in 2026 revenue from the new tax, which would be on top of Illinois’ graduated 20%–40% state tax and per-wager surcharges.
- A court hearing is scheduled for March 2026, and state lawmakers have proposed measures to bar local gambling taxes or offset Chicago’s take if the city proceeds.