Illinois state lawmakers could stymie a plan by Chicago Mayor Brandon Johnson to raise sports betting taxes.
On Monday Rep Daniel Didech, chair of the House Gaming Committee, introduced House Bill 4171, which aims to solidify the state’s power in regulating sports betting. The bill would prohibit cities or counties from imposing taxes on sports betting.
A press release said the proposal is “in direct response to the City of Chicago’s plan to impose local spots betting tax and is designed to prevent policies that would harm consumers and undermine consistent statewide oversight”.
Johnson proposed a 10.25% local tax on sports betting, on top of the 20% or more the state charges, in his 2026 budget released last week.
“When the legislature legalised sports betting in 2019, it was never our intent to allow local governments to create their own rules for this industry,” Didech said in the release. “Chicago’s proposal will hurt consumers, drive vulnerable people to predatory illegal markets and reduce state tax revenue. The city should work collaboratively with the state to ensure sound, informed policy decisions that are made on this issue.”
Several representatives from Chicago signed on as co-sponsors of the bill, including Rep Curtis Tarver, Rep Edgar Gonzalez, Rep Angie Guerrero-Cuellar and Rep Mike Kelly.
“We need to pass this legislation to protect Chicagoans from another tax and prevent an unmanageable patchwork of local regulations,” Kelly said. The Illinois legislature reconvenes on 14 January.
Illinois already hiked sports betting tax
Illinois lawmakers have raised sports betting taxes significantly over the past two years.
In 2024, legislators raised the base sports betting tax from 15% to a tiered system ranging from 20% to 40% depending on an operator’s revenue. The increase resulted in more than $260 million in new taxes for the state.
This year, Governor JB Pritzker’s budget included new per-wager surcharges for sportsbook operators. Sportsbooks now pay 25 cents per wager on the first 20 million bets and 50 cents on any wagers beyond 20 million taken by an individual book. Illinois bettors placed 370 million bets in 2024, with DraftKings and FanDuel both taking more than 150 million each.
The state’s 10 sportsbook operators all instituted various forms of mitigation techniques following the surcharge implementation. The mechanisms range from per-bet fees for consumers to minimum bet sizes.
A new bill from Rep Daniel Didech seeks to bar local governments from imposing their own rules on the industry.