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yesterday

Chicago Licenses Sportsbooks as Lawsuit Over New Betting Tax Continues

With licenses now issued, operators pursue a constitutional challenge to the ordinance with a March hearing scheduled.

People watch sports inside the DraftKings Sportsbook at Wrigley Field on Nov. 17, 2025, in Chicago. (Armando L. Sanchez/Chicago Tribune)
Chicago Mayor Brandon Johnson talks to reporters at City Hall after meeting with a group of aldermen to discuss the city budget, Dec. 15, 2025. Also with the mayor are Budget Director Annette Guzman, from left, Comptroller Michael Belsky and Ald. Jason Ervin, 28th. (Terrence Antonio James/Chicago Tribune)
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Overview

  • Chicago granted municipal licenses on Dec. 31, allowing sportsbooks to stay live in 2026 as the Sports Betting Alliance withdrew its request for an emergency TRO.
  • The city’s ordinance adds a 10.25% levy on adjusted gross receipts from bets placed within Chicago and requires annual municipal licenses costing $5,000 to $50,000.
  • The Sports Betting Alliance argues the Illinois Constitution reserves income-based taxation and licensing for revenue to the state unless expressly authorized by the General Assembly.
  • Illinois already imposes a progressive 20%–40% state tax on operator revenue plus per-wager surcharges of 25 cents on the first 20 million bets and 50 cents thereafter.
  • A hearing on the industry’s constitutional challenge is set for March 2026, as legislators weigh proposals to bar local sports-betting taxes or reduce state disbursements to Chicago if it proceeds.