- Chicago city officials are exploring a new tax on online sportsbooks – a move that could make placing a bet inside Chicago more expensive.
CHICAGO – During a City Council hearing Monday, Chief Financial Officer Jill Jaworski confirmed that the Johnson administration has already analyzed how a local tax on online sportsbooks could work. The idea gained support from Ald. Jeanette Taylor (20th), who argued the city should get a cut of the growing online betting market.
“People download them and gamble all the time,” Taylor said. “We should be able to get money off of them.”
Chicago currently receives no direct tax revenue from legal sports betting, despite Illinois ranking among the top betting states in the country. Under the current system, the state takes the overwhelming share of taxes, with little flowing to local governments. City officials are increasingly frustrated by that imbalance.
- Further Reading: Illinois Becomes 3rd State To Hit $50 Billion in Sports Bets
Budget Committee Chair Jason Ervin (28th) noted that the state collects nearly a 5-to-1 share over cities from video gaming, a similar issue now surfacing in the sports betting space.
“It doesn’t take a rocket scientist to figure out the current tax structure is a loser for Chicago,” said Ervin.
While no tax rate or timetable has been proposed, any local levy could prompt Illinois online sportsbooks to adjust — and bettors may feel the effects.
Bettors Already Getting Hit
When Illinois imposed a per-bet tax earlier this year, some operators responded by adding minimum bet thresholds or tacking on transaction fees. A similar playbook could emerge if Chicago introduces its own tax.
That would most affect casual bettors placing smaller or frequent wagers, who might see even higher per-bet fees or fewer to no sports betting bonuses within city limits. Any time a new jurisdiction adds a tax, operators are going to adjust. That usually lands on the customer one way or another.
The push for a city tax is part of a broader effort to rework how gambling revenue is split between Chicago and Springfield.
“We really want to find solutions here — not just say no,” Ervin said.
City leaders say they’re open to expanding legal gambling, but only if the city gets a fairer share.
