The Sports Betting Alliance, composed of operators such as FanDuel, DraftKings and Fanatics, has issued a letter to Chicago Mayor Brandon Johnson regarding the possibility of a joint exit from Illinois on January 1, 2026.
Johnson and the Sports Betting Alliance are scheduled to meet on December 22 to discuss possible alterations to the city's budget plan for 2026, which includes a 10.25% tax for online wagers placed within Chicago, in addition to Illinois' current tax rate of between 20-40%.
The Alliance shared its concern over the lack of clarity regarding a new city license requirement mentioned within the tax hike language, given there is no such terminology in the sports betting requirements listed within Johnson's budget proposal.
"As drafted, the proposed budget and revenue ordinance would impose a City licensing requirement effective January 1, 2026, yet the City does not currently have a licensing rubric that contemplates online sports wagering operators," the letter said.
"In the absence of defined terms, application standards, required documentation and administrative procedures, operators would have no meaningful way to comply with the ordinance upon its effective date.
"It is urgent that your Office takes action to develop a cogent licensing framework and to delay the effective date by at least 180 days to allow operators to understand the requirements, prepare and submit complete applications and obtain the necessary City licenses prior to enforcement. "
The Alliance fears if no standards are issued to licensed operators prior to the budget going into effect, the entities could risk noncompliance penalties and would therefore choose to pull online sports betting operations from Illinois by January 1.
The organization continued: "Online sports wagering operators are highly regulated entities that cannot lawfully operate without all required licenses. Absent published standards and a functioning application and issuance process, operators cannot continue to legally conduct business in the City.
"A shut-down of online sports wagering in Chicago, however temporary, would undermine the ordinance's revenue and policy objectives by driving consumers to online platforms that dodge laws that ensure consumer protection, age verification and responsible gaming protections. A shut down of legal online platforms will also risk jeopardizing millions, if not tens of millions, of dollars in state revenue."
While the meeting between Johnson and the Sports Betting Alliance is scheduled for December 22, many in Chicago believe a vote on an alternate budget could be held as early as December 20.
The secondary licenses included within the tax hike language, such as the new city license, would be held by management service providers, or the operators which maintain betting platforms used by in-state partners.
The Illinois Gaming Board implemented a per-bet fee of $0.25 for each wager accepted by an operator within the state earlier in 2025, increasing to $0.50 for all bets placed thereafter
