Show goes on
The City of Chicago has avoided a potential shutdown of sports betting on January 1, which was threatened by the Sports Betting Alliance (SBA), by granting sportsbooks a last-minute concession.
Johnson’s administration issued new “City licenses
Facing a temporary restraining order filed by the SBA, Mayor Brandon Johnson’s administration issued new “City licenses” to sports betting firms on December 31.
The trade body took to X the same day to announce it was dropping its temporary restraining order against the City, but still pursuing an existing suit against it:
The existing suit by the SBA claims Chicago’s new tax on online sports betting, which went into effect January 1, is unconstitutional and invalid.
Concession granted, suit pursued
The SBA first threatened a New Year Chicago sportsbook shutdown in December over the City’s failure to issue licenses to the ten sportsbooks operating in Illinois.
Since City Hall has now issued licenses, the SBA’s restraining order against Chicago is now moot. It was launched over the risk posed by its member firms operating without licenses.
“We’re pleased to see the city moved quickly yesterday to maintain the operations of legal platforms,” stated the trade group in response.
unconstitutionality of the City’s recently passed license and tax ordinances.”
Despite the ten sportsbooks gaining licenses, the SBA isn’t done with Mayor Brandon Johnson’s administration, stating it would “pursue in court resolution of the invalidity and unconstitutionality of the City’s recently passed license and tax ordinances.”
City Hall’s tax hike bites deep into Illinois’ already steep sports betting levies, which includes a graduated rate of 20-40% on adjusted gross revenue, and 2025’s new per‑wager charge.
Not constitutional
The SBA suit contends that due to Illinois’ regulatory set-up, the City of Chicago doesn’t “have the power to issue licenses.”
The Illinois constitution, claims the SBA, doesn’t allow for “a home rule unit such as the City of Chicago to demand a license or impose taxes “unless the General Assembly has expressly granted that power to the home rule unit.”
As the General Assembly has not expressly given City Hall that power, the SBA is making the area of uncertainty the focus of its challenge against the tax hike.
