Get all your bets in before midnight if you’re living in Chicago because there’s now a warning coming from The Sports Betting Alliance that betting could be shutdown on New Year’s Day.
InGame’s Jill Dorson reported earlier this week that the SBA filled several complaints against the City of Chicago after its approved budget included a provision to tax sports betting operators for any wagers taken in the city limits. The new tax is set at 10.25% and will go into effect on Jan. 1, but the major legal issue that the gambling companies are arguing that the city of Chicago has made it impossible to comply with the new law.
In addition to the new 10.25% tax, Chicago is also requiring a $50,000 first-year license requirement and $25,000 renewal for betting operators.
The new policy requires betting operators to obtain a license from the city to collect the tax, but as of now Chicago has not set up any way to issue these licenses and none have been given out yet. Without the licenses from Chicago, the betting companies cannot legally continue to operate and do not have the ability to get one in time before the new tax is implemented on Jan. 1, leading to a potential shutdown of sports betting within the city limits of Chicago.
This could affect customers in Chicago that use any of the following 10 betting companies in the state of Illinois.
- bet365
- BetMGM
- BetRivers Sportsbook
- Caesars Sportsbook
- Circa Sports
- DraftKings
- ESPN BET Sportsbook
- Fanatics Sportsbook
- FanDuel Sportsbook
- Hard Rock Bet
The SBA warns that by avoiding breaking the law with the city of Chicago by refusing to accept wagers beginning on Jan. 1, then in turn they could lose their state license not only in Illinois but in other states as well.
Angry patrons have their pitchforks pointed at the city of Chicago. Sports betting has been a state’s rights issue ever since it became legalized and the SBA is arguing that Chicago lawmakers do not have the legal right to impose a tax in this manner. The SBA’s lawsuit claims that the city’s new tax and licensing requirement are unconstitutional, and that the city has “exceeded” its authority in imposing the tax and the licensing requirement.
Chicago mayor Brandon Johnson has been made aware of the potential shutdown of sports betting in the city for several months, but he ignored the warnings and now he’s said that he would not sign nor veto the aldermen’s budget. Mayor Johnson’s inaction would allow the new tax and licensing requirement to go into effect on New Year’s Day, making the betting companies temporarily deny wagers from residents of Chicago in order to not break the law and thus suffer further consequences.
A few state representatives have tried to stop this issue during the past few months as Illinois state Rep. Daniel Didech, filed legislation in October that would ban local jurisdictions from taxing, regulating, or imposing fees on gambling. Then, state Sen. Patrick Joyce filed a bill that seeks to cut state funds to Chicago by the amount the tax would raise. Either legislation could avoid the potential betting shutdown, but he Illinois General Assembly doesn’t open until Jan. 14, 2026.
So, are you hitting up your old bookie to bet on the Bears this weekend?
