Chicago wants to add its own new tax on Illinois sports betting, a move that state lawmakers are working to prevent.
House Bill 4171 seeks to amend the Sports Wagering Act to clarify that only the Illinois legislature can license, regulate, or tax the state's sports betting industry. This amendment follows the Chicago mayor's proposal of a 10.25% local sports betting tax in his 2026 budget.
Key Takeaways
- House Bill 4171 would prevent local governments, including Chicago, from taxing or regulating Illinois sports betting.
- Lawmakers say local betting taxes could harm consumers and reduce state revenue.
- The bill will be heard in the 2026 legislative session after adjournment on May 31.
Rep. Dan Didech, who chairs the House Gaming Committee, said the intent of legalization in 2019 was not to allow cities to create separate frameworks. He warned that Chicago's proposal could harm consumers and drive bettors toward illegal markets while reducing state tax revenue.
The bill explicitly restricts home rule powers, ensuring municipalities cannot impose or collect taxes or fees related to sports wagering. Although the Illinois 2025 Legislature adjourned on May 31, HB 4171 is expected to be taken up when the next session begins on Jan. 14.
Chicago betting plan draws criticism from fans and lawmakers
The legislative proposal stems from growing tensions over a new plan by Chicago officials to introduce an additional city betting tax. According to a report by the Chicago Financial Future Task Force, residents would face a 50-cent charge per wager, stacked atop the state's existing per-wager tax enacted on July 1 and implemented by most operators on Sept. 1.
In practice, a $1 wager placed in Chicago would result in a 100% effective tax rate.
The plan has drawn broad criticism from sports fans, consumer organizations, and politicians. With more than half of sports wagers in Illinois being placed in amounts of $5 or fewer, opponents suggest that it was unfair to small bettors and can drive them into the hands of offshore operators.
The Illinois Attorney General and Better Business Bureau have warned that unregulated platforms often lack player protections and siphon potential tax revenue away from the state. So far, more than 100,000 residents have contacted lawmakers to protest the per-wager tax, flooding social media with complaints.
Gov. Pritzker's gambling winnings highlight broader gaming debate
The broader conversation surrounding gambling in Illinois has taken another turn with Gov. JB Pritzker's disclosure of $1.4 million in blackjack winnings from a Las Vegas casino last year. The earnings, confirmed by his latest tax filings, came during a vacation trip with his wife and friends.
A spokesperson said the governor plans to donate the winnings to charity.
Gov. Pritzker and his wife, MK, reported a combined income of $10.6 million in 2024. The disclosure comes as Pritzker positions himself nationally as a leading critic of President Donald Trump, amid ongoing federal immigration enforcement operations in Chicago.
