Chicago officials are considering a city tax on online sports betting, with the administration saying it has analysed the option. No proposed rate or amount was provided; the city currently taxes retail sports betting at 2% of gross gaming revenue.
A new city tax could add to operators’ existing Illinois tax costs if Chicago adopts the proposal.
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Chicago’s City Council passed an alternate 2026 budget that includes a 10.25% tax on wagers placed within city limits and a video gaming terminal provision. The Sports Betting Alliance warned the proposed licensing framework could prevent operators from complying by 1 January 2026 and force them to suspend services; the budget now goes to Mayor Brandon Johnson.
A revised Chicago budget retains a proposed 10.25% tax on sports betting within city limits, filed by 27 alderpeople. If adopted, the levy would take effect on 1 January alongside state and Cook County sports betting taxes; state Representative Dan Didech has introduced a bill to prohibit local sports betting taxes.
Five Illinois Democratic lawmakers introduced a bill to bar municipalities and counties from taxing or charging fees on sports betting. Rep. Daniel Didech filed the measure on 20 October in response to Chicago’s proposed 10.25% tax on online sportsbook revenue from bets placed within city limits; the General Assembly is due to reconvene on 14 January.
Chicago Mayor Brandon Johnson has proposed a 10.25% tax on adjusted gross sports betting revenue in the city’s fiscal 2026 budget plan. The proposal is projected to raise about $26 million annually and requires approval by the City Council; the report says its inclusion in the final budget is not assured.
Chicago Mayor Brandon Johnson’s office is reportedly considering slot machines at O’Hare and Midway airports as part of measures to address a $1.15 billion budget deficit. State law permits machines beyond airport security checkpoints, and alderman Gilbert Villegas said the city could earn up to $40 million annually.