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.
If approved, the city tax would add a local levy on sportsbooks’ adjusted gross sports betting revenue.
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Chicago’s 2026 budget sets a 10.25% tax on adjusted gross revenue from wagers placed in the city with licensed sports betting operators, effective 1 January, according to the report. The tax is forecast to raise $26.2m in 2026; the budget also anticipates $6.8m from a proposal to legalise video gaming terminals in the city.
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.
Illinois state Representative Kam Buckner introduced a bill proposing to extend Bally’s Chicago’s temporary casino licence beyond its September 2026 expiry. The proposal allows six months initially, with two possible three-month extensions, potentially keeping the Medinah Temple casino open through September 2027; Bally’s said it remains committed to its permanent casino project.