* 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…

* iGaming Business | Chicago mayor proposes new sports betting tax affecting Illinois operators: In 2024, Governor JB Pritzker changed the industry’s tax structure in his 2025 budget. Instead of the base 15% tax on sports betting revenue, it introduced a tiered system ranging from 20% to 40%. The tax rate is tied to the revenue generated by each sportsbook. The increase resulted in more than $260 million in new taxes from the industry. This year’s adopted budget, meanwhile, included a new per-wager surcharge for sportsbooks. Operators pay 25 cents per wager on the first 20 million wagers, and 50 cents each after that. In 2024, there were 370 million bets placed in Illinois, with both DraftKings and FanDuel taking more than 150 million bets each.