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* From Chicago Mayor Brandon Johnson’s proposed budget…
To make Chicago more affordable for working families, the Protecting Chicago Budget advances a fair and balanced revenue strategy—one where everyone contributes in line with their capacity. Based on our citywide Budget Engagement Survey results, residents prioritized new revenues from a Community Safety Surcharge (CSS), Online Sports Wagering, and increased Vacant Building Fees. This budget includes all three measures. […]
The Online Sports Wagering Tax is a new tax that will apply a 10.25% rate on adjusted gaming receipts from online sports betting licensees—an industry that has grown rapidly, with over $48 billion wagered nationwide in the past five years. The measure ensures this expanding sector contributes to the City’s shared priorities. […]
In 2026, recreation taxes are projected to generate $429.5 million in revenue, an increase of $58.5 million over the 2025 budget. This growth is primarily driven by the introduction of two new taxes on sports wagering and hemp products.
The proposed sports betting tax could generate $26.2 million according to the city.
* Rep. Daniel Didech this morning…
State Rep. Daniel Didech (D–Buffalo Grove) today introduced House Bill 4171 to affirm that regulation and oversight of the sports wagering industry remain the sole responsibility of the State of Illinois.
Didech’s proposal comes in direct response to the City of Chicago’s plan to impose a local sports betting tax and is designed to prevent policies that would harm consumers and undermine consistent statewide oversight.
“When the legislature legalized sports betting in 2019, it was never our intent to allow local governments to create their own rules for this industry,” said Rep. Didech, chair of the House Gaming Committee. “Chicago’s proposal will hurt consumers, drive vulnerable people to predatory illegal markets, and reduce state tax revenue. The city should work collaboratively with the state to ensure sound, informed policy decisions are made on this issue.”
“We can’t have different rules for sports betting depending on city boundaries,” said Rep. Curtis Tarver (D–Chicago), a co-sponsor and Chair of the House Revenue Committee. “This bill ensures clarity and fairness for everyone involved.”
“I support House Bill 4171 to ensure oversight of the sports betting industry remains within the full purview of the state and to stop inadvertently hurting recreational sports bettors,” said Rep. Edgar Gonzalez (D–Chicago), a co-sponsor of the bill.
“We need to protect Chicago sports fans from unnecessary taxes and ensure players aren’t pushed toward illegal, unregulated markets,” said Rep. Angie Guerrero-Cuellar (D–Chicago), a co-sponsor of the bill.
“We need to pass this legislation to protect Chicagoans from another tax and prevent an unmanageable patchwork of local regulations,” said Rep. Mike Kelly (D–Chicago), a co-sponsor of the bill.
* From the bill…
The regulation and licensing of sports wagering, including, but not limited to, the imposition of fees, surcharges, or other costs for the privilege of conducting or participating in sports wagering, are exclusive powers and functions of the State. A home rule unit may not regulate or license sports wagering. […]
A home rule unit may not impose or collect a tax on sports wagering or a tax on receipts generated from sports wagering.
Thoughts?
* More…
posted by Isabel Miller
Tuesday, Oct 21, 25 @ 9:32 am
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When in doubt tax,tax,tax…never cuts
Comment by Red headed step child Tuesday, Oct 21, 25 @ 9:37 am
hoping the City of Chicago contracts include provisions for contracts with background checks that include outstanding warrants. after all, isn’t it the head tax that is now called a Community Safety Surcharge?
Comment by Amalia Tuesday, Oct 21, 25 @ 9:42 am
Taxing sports wagering is tricky. The apps (at least the top few) are pulling in big money, so they are a ripe target for increased taxes. Problem is there are plenty of untaxed off-shore gambling websites, as well as online sweepstakes games and “prediction markets” operating in legal grey areas. Over-taxing the licensed sports betting apps could easily send gamblers to those sites and result in lower revenue collection by the state.
Didech’s bill is akin to the state legislature telling Chicago or any other locals who get similar ideas “hands-off, you’re gonna kill the goose that’s laying us a golden egg.”
Comment by Anon404 Tuesday, Oct 21, 25 @ 9:58 am
Why doesn’t Chicago legalize video gaming machines? Surely that would bring in better revenue than taxing online betting. Maybe split the proceeds between budget and transit?
Comment by SKI Tuesday, Oct 21, 25 @ 10:20 am
That was quick. I cannot remember a bill filed against Chicago’s budget interests that four Chicago legislators immediately join as co-sponsors. I know they’re not to most friendly to the Mayor, but still.
Comment by Three Dimensional Checkers Tuesday, Oct 21, 25 @ 10:22 am
== cannot remember a bill filed against Chicago’s budget interests that four Chicago legislators immediately join as co-sponsors. ==
Outstanding point. The waning clout of the Mayor’s Office in Springfield has been a growing phenomenon for a handful of years now. This might be one of the best low-key examples.
Comment by Anon404 Tuesday, Oct 21, 25 @ 10:46 am
Well once again the State is stealing money that rightfully belongs to Chicago. What is the Mayor supposed to do? /S
Comment by DuPage Saint Tuesday, Oct 21, 25 @ 11:01 am
Like I said last week - Brandon’s only response is Tax Tax tax.
Comment by Rahm's Parking Meter Tuesday, Oct 21, 25 @ 11:02 am
Illinois has already killed the online gambling golden goose. Most everyone I know has taken their wagering off of DraftKings and FanDuel and wagers independently likely they used to. Chicago’s tax tax tax first policy will merely stab what is already dead or dying. They will never learn.
Comment by DuPage Moderate Tuesday, Oct 21, 25 @ 11:23 am
== cannot remember a bill filed against Chicago’s budget interests that four Chicago legislators immediately join as co-sponsors. ==
There is over a billion in new tax revenue being raised here, on top of the billions in budget increases that have occurred over the past decade.
I’d get my name on the opposition list as fast as I could too.
I’d also start circulating my financial requests to sway my vote back to supporter.
Comment by Stosh Tuesday, Oct 21, 25 @ 11:27 am
== Why doesn’t Chicago legalize video gaming machines? ==
This seems to be some low-hanging fruit that would not only help the city, but could help small businesses as well
Comment by OneMan Tuesday, Oct 21, 25 @ 11:28 am
This is not gambling specific, but the number of areas where Illinois has duplicative levels of government regulations, taxing, etc, always annoys me. Illinois literally has the largest number of independent taxing bodies of any state in the US. It seems like every business needs to get a dozen different approvals from multiple levels of government, sometimes from multiple different departments at the same level of government that don’t talk to each other.
I’m a pretty left leaning guy who reflexively assumes that any time a right winger talks about getting rid of rules to make a state more business friendly they usually mean things like minimum wage, anti-pollution, and child labor laws. But I am definitely of the mind that we have lots of unnecessarily byzantine rules and approvals that are of questionable utility.
Tax questions aside, I generally agree that unless we are talking things that are traditionally local issues (like zoning, etc), I am generally fine with home rule entities not being able to set their own regs for things that should be regulated uniformly at the state level.
Comment by Homebody Tuesday, Oct 21, 25 @ 11:32 am
Maybe next time more then 16 percent of the City voters will turn out and elect a competent mayor- hope springs eternal
Comment by Sue Tuesday, Oct 21, 25 @ 11:44 am
Good afternoon OneMan and SKI…
Why doesn’t Chicago legalize video gaming to help with their budget?
Some members of City Council tried all of two weeks ago. It was rebuffed in committee thanks to strong work by a bizarro coalition of organized labor and Chicago’s junk rated casino operator. https://chicago.suntimes.com/city-hall/2025/10/09/ballys-casino-anthony-beale-video-gambling-proposal-chicago-lost-revenue
Comment by ChicagoBars Tuesday, Oct 21, 25 @ 12:26 pm
=== Most everyone I know===
And yet, online wagering handles are still growing year over year.
Anecdotes are not data.
https://igb.illinois.gov/sports-wagering/sports-reports.html
Comment by Rich Miller Tuesday, Oct 21, 25 @ 12:41 pm
== I cannot remember a bill filed against Chicago’s budget interests that four Chicago legislators immediately join as co-sponsors.==
I had the exact same reaction. This mayor needs competent IGA help fast.
Comment by low level Tuesday, Oct 21, 25 @ 12:46 pm