Illinois Lawmakers Introduce Invoice to Block Chicago From Including New Playing Tax

Lawmakers in Illinois have launched a invoice looking for to ban native authorities from implementing their very own taxes on playing. 

HB 4171 states that “The regulation and licensing of sports activities wagering, together with, however not restricted to, the imposition of charges, surcharges, or different prices for the privilege of conducting or taking part in sports activities wagering, are unique powers and features of the State.”

The invoice goes on to say, “A house rule unit might not impose or accumulate a tax on sports activities wagering.” 

If enacted, it should cease Chicago from with the ability to impose a proposed 10.25% metropolis tax on sports activities betting.

Rep. Daniel Didech, who’s chair of the Home Gaming Committee, launched the invoice, and commented, “When the legislature legalized sports activities betting in 2019, it was by no means our intent to permit native governments to create their very own guidelines for this business.”

“Chicago’s proposal will harm shoppers, drive weak folks to predatory unlawful markets, and scale back state tax income. The town ought to work collaboratively with the state to make sure sound, knowledgeable coverage choices are made on this situation.”

The invoice is co-sponsored by fellow Democrats Curtis J. Tarver, II, Angelica Guerrero-Cuellar, Edgar González, Jr., and Michael J. Kelly. 

Rep. Guerrero–Cuellar added, “We have to defend Chicago sports activities followers from pointless taxes and guarantee gamers aren’t pushed towards unlawful, unregulated markets.”

Chicago Mayor Eyes Sports activities Betting To Cut back Deficit

Chicago Mayor Brandon Johnson‘s newly launched 2026 finances plan included the ten.25% tax, which might apply to wagers positioned each on-line and at retail sportsbooks. 

The Chicago Monetary Future Job Power, launched by Mayor Brandon Johnson, beforehand beneficial that the town contemplate including a betting surcharge for all on-line sports activities wagers positioned inside its borders.

This was slated to use to bets positioned on-line throughout all main sports activities, together with esports. In its interim report, the duty pressure acknowledged, “At the moment, the Metropolis taxes sports activities wagering at bodily sports activities wagering services the place solely 2% of all sport betting happens. The remaining 98% of sport betting happens on-line and stays untaxed.”

An extra metropolis surcharge on on-line bets was estimated to generate as a lot as $17 million per 12 months. Nevertheless, the proposed 10.25% tax is estimated to generate round $26 million. Mayor Johnson is aiming to chop a projected finances shortfall of $1.15 billion. 

Bettors Paying The Value For New Illinois Taxes

The Chicago tax could be along with the state-wide surcharge Illinois Governor JB Pritzker included in his finances earlier this 12 months. 

As a part of the brand new tax, sportsbooks are charged both $0.25 or $0.50 on each guess they settle for within the state. 

In response to the brand new tax, sportsbooks have both handed the charge immediately onto bettors or raised the minimal stake for wagers. 

Caesars Sportsbook was the newest to announce it should add a charge of $0.25 to all bets positioned on the platform in Illinois from September. FanDuel, DraftKings, and Fanatics additionally selected to go the fee on to their prospects. 

Circa Sports activities ($10), BetMGM ($2.50), BetRivers ($1), ESPN Guess ($1), and Laborious Rock Guess ($2) all selected to boost the minimal stake as a substitute. 

In the meantime, Governor Pritzker revealed final week that he had remodeled $1.4 million from playing final 12 months. The billionaire inheritor to the Hyatt resort empire mentioned he acquired “extremely fortunate” enjoying blackjack in Vegas.