Chicago Mayor proposes 10.25% online sports betting tax hike
The proposal came as part of Mayor Brandon Johnson’s 2025/26 Protecting Chicago Budget plan.
An increase in sports wagering taxes has been proposed in Chicago by Mayor Brandon Johnson.
The proposal, submitted as part of Johnson’s 2025/26 Protecting Chicago Budget plan, was entered as part of ‘Priority 6: Balance an equitable budget.’ The ‘Online Sports Wagering Tax’ would apply a 10.25% rate on adjusted game receipts from operators. The plan notes that online sports betting has seen $48bn wagered in the last five years, and that by adding the tax, the sector can continue to contribute to Chicago’s development and priorities.
The proposal seeks to generate an additional $1.15bn for the city without increasing property taxes, with online sports betting one of several sectors targeted.
Other highlights from the budget plan include a surcharge on Chicago’s largest employers, an adjustment to Personal Property Lease Tax and an updated tax structure for the transport network. Combined, these new revenue streams are expected to generate $500m for the city.
Recreation taxes, a tax placed upon businesses in gaming, liquour, cannabis and similar fields, may also impact sports betting in Chicago, with a 15.8% increase expected from the 2025 budget to the 2026 proposal. In total, the proposal hopes for a 2026 corporate fund of $6.06bn, up 4.7%.
Said Johnson, “To make Chicago more affordable for working families, the Protecting Chicago Budget advances a fair and balanced revenue strategy—one where everyone contributes in line with their capacity.
“Based on our citywide Budget Engagement Survey results, residents prioritized new revenues from a community safety surcharge, online sports wagering and increased vacant building fees.”
The proposition comes after Illinois imposed a new tax on wagering in the state in July. Operators have taken different approaches to this, with some, like FanDuel and DraftKings, imposing transaction fees on players, which others implemented minimum wagers.
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