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Chicago imposes 10.25% sports betting tax as operators challenge levy

Regulation

Chicago’s 10.25% sports betting tax took effect on 1 January after Mayor Brandon Johnson allowed the city budget to become law without signing or vetoing it. The Sports Betting Alliance, representing bet365, BetMGM, DraftKings, Fanatics and FanDuel, is challenging the city’s authority in court; Illinois lawmakers are also considering measures concerning local betting taxes.

The levy adds a municipal tax to operators’ existing Illinois sports betting taxes while its legality is contested.

End-of-day close DraftKings (DKNG), USD, to 20 February 2026
Story date24 November 202520 February 2026

Latest reported results

DraftKings NASDAQ: DKNG

Quarter ended 30 September 2026

Revenue
USD 1.33bn10-Q filing 0001883685-26-000041
Operating income
−USD 493.1m10-Q filing 0001883685-26-000041

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