City Authority in Chicago Proposes a 50-Cent Tax for Each Sport Wager Made
Chicago is planning to introduce a new tax on sports betting starting January 1, 2026. This move is expected to generate around $40 million in annual revenue for the city[1].
Currently, most sports bets in Illinois are placed online and are subject only to state-level taxes. The city of Chicago does not currently tax online wagers, with the exception of a 2% fee on retail sports bets, such as those placed at Wrigley Field's DraftKings Sportsbook[1].
The proposed tax is a $0.50 charge on every sports bet placed within Chicago city limits. This tax would add to the similar levy that the state of Illinois implemented as of July 1, 2025. The state tax amounts to $0.25 on the first 20 million wagers each operator accepts, before doubling thereafter[1].
The city's finance team believes there is no legal prohibition that would prevent the city from introducing such a measure[1]. It is up to the sportsbooks to decide if they will pass on the entire tax charge to the end customer. Major sportsbooks like DraftKings and FanDuel started collecting this charge from customers from September[1].
The new tax is part of broader municipal efforts to increase gambling-related revenues amid budget challenges. The city of Chicago faces a projected $1.1 billion budget shortfall in 2026, and Mayor Lori Lightfoot has tasked her finance team with finding ways to address this deficit[1].
Some bettors have expressed displeasure with the state's introduction of a levy and have threatened to go outside city limits or use offshore platforms in response to the news of further taxes[1]. Aldermen and city officials are exploring other gambling-related revenue sources without harming existing casinos and jobs[2].
In summary, the $0.50 per bet tax starting in 2026 aims to raise approximately $40 million annually for Chicago and is part of broader municipal efforts to increase gambling-related revenues amid budget challenges[1][2].
[1] Chicago Tribune, "Chicago plans to introduce a new tax on sports betting," 2025. [2] Chicago Sun-Times, "Chicago's budget woes: Aldermen explore gambling-related revenue sources," 2025.
The city of Chicago intends to levy a $0.50 tax on every sports bet within its limits starting in 2026, hoping to generate around $40 million annually in revenue for the city's finance. This move is being considered as part of municipal efforts to increase gambling-related revenues amid budget challenges, with the aim to address a projected $1.1 billion budget shortfall in 2026.
