\n Posted on: December 23, 2025, 08:22h.\u00a0\n <\/p>\n
\n Last updated on: December 23, 2025, 08:22h.\n <\/p>\n
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- Chicago\u2019s newly passed budget features a new sports wagering tax.<\/strong><\/li>\n
- It works out to 10.25% on operators\u2019 revenue generated in the city.<\/strong><\/li>\n
- Sports Betting Alliance warns tax lacks licensing framework, meaning some operators could leave the city as soon as January.<\/strong><\/li>\n<\/ul>\n
Chicago\u2019s $16.6 billion budget, which Mayor Brandon Johnson (D) said he won\u2019t sign nor reject, contains his proposed tax on sports bets placed within city limits. A trade group warns the levy could chase operators out of the city and bettors to illegal bookmakers.<\/p>\n
![\"VGT](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/07\/shutterstock_2255383825-858x572.jpg\")
Chicago Mayor Brandon Johnson. The city\u2019s budget contains his proposed city-specific sports betting tax. (Image: Shutterstock)<\/figcaption><\/figure>\n Johnson\u2019s proposal calls for a 10.25% tax on operator revenue generated in the third-largest US city in hopes of raising at least $26 million. If the new levy stands, it\u2019d push operators\u2019 tax obligations on Chicago-generated receipts to 32.25%.<\/p>\n
That would compound gaming companies misery in Illinois, which has some of the highest sports wagering taxes in the country. Under a newly signed law<\/a> that went into effect in July, Illinois applies a levy of 25 cents on an operator\u2019s first 20 million booked bets and 50 cents thereafter. The Sports Betting Alliance (SBA) warns a city-specific tax will drive bettors to black market bookmakers.<\/p>\n
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The new Chicago tax on sports wagering will drive more sports fans to illegal, predatory websites and bookies that are thriving online without any oversight or consumer protections, while avoiding tax obligations entirely,\u201d according to the trade group. \u201cFurther penalizing players in the City of Chicago pushes more sports fans to unregulated, illegal alternatives and has serious implications for the sustainability of the legal market.\u201d<\/p>\n<\/blockquote>\n
The city\u2019s new budget also features a new $6.8 million levy on video gaming terminals<\/a> (VGTs)<\/strong>.<\/p>\n
Chicago Sports Betting Tax Raises Other Concerns<\/h2>\n
There are concerns that the fresh sports wagering tax raises new licensing concerns that could ultimately lead some gaming companies to halt offering sports betting in Chicago.<\/p>\n
\nThose worries are born out of criticism that Johnson\u2019s tax proposal doesn\u2019t contain adequate regulatory framework and with it scheduled to go into effect on Jan. 1, operators may not have enough time to come into compliance. Then there\u2019s the worry that if the city\u2019s sports betting levy moves to the upside, bettors will be compelled to boost their wage sizes.<\/p>\n<\/div>\n
\u201cThe city\u2019s new tax has raised concerns of city leaders<\/a>\u00a0and\u00a0<\/a>industry experts<\/a>\u00a0who argue that raising the cost to bet will have unintended consequences by pushing more consumers to place higher bets or pushing more people to seek out illegal alternative,\u201d adds the SBA.<\/p>\n
Recent data confirm the aforementioned state tax hike that went effect in July resulted in reduce bet count, but increased revenue for the state<\/a>, indicating bettors are in fact betting less while increasing the size of their wagers.<\/p>\n
Why Chicago Needs Money<\/h2>\n
A big part of the reason Chicago is cash-strapped is public pension debt \u2014 something the upcoming Bally\u2019s casino<\/a> is also tasked with improving. In fact, Chicago\u2019s $53 billion in unfunded public pension liabilities exceeds the related tallies of 44 states, according to Illinois Policy.<\/p>\n
However, the Johnson budget that includes the sports betting and VGT taxes doesn\u2019t include furloughs, higher healthcare premiums, or pay freezes for the city\u2019s public workers. It actually calls for raises.<\/strong><\/p>\n<\/div>\n
- It works out to 10.25% on operators\u2019 revenue generated in the city.<\/strong><\/li>\n