Chicago Faces State-Level Pushback Over New Sports Betting Tax Plan

Lawmakers Warn Of Spillover Effects Across Illinois

Mayor Brandon Johnson wants to apply Chicago’s 10.25 percent amusement tax to online wagers. Legislators argue the move could inspire more than 200 municipalities to introduce their own betting taxes, reshaping the market and sending players to unregulated sites.

Representative Dan Didech captured the risk in stark terms. “If you increase the tax so it becomes cost-prohibitive for gamblers, they will seek out overseas sites… That is a direct loss in tax revenue for the state.”

He also warned about consumer exposure on offshore platforms. “A lot of these places require you to transfer your money to Bitcoin and cryptocurrency. Sometimes, winners get paid out. Sometimes they do not. Money is not kept in segregated players accounts. It is a much more predatory environment for players.”

City Hall Budget Troubles Add Pressure

The confrontation comes as Mayor Johnson faces a widening financial gap. His proposed corporate head tax was rejected, leaving a 100 million dollar deficit. The sports betting tax is intended to provide 26 million dollars, but that revenue disappears if alderpersons vote it down.

State lawmakers say operators are already absorbing steep increases after Illinois raised taxes twice in two years, introducing a tiered system that reaches 40 percent and placing an additional tax on each bet. Representative Curtis Tarver warned that piling a city level levy on top of this structure risks political fallout and renewed scrutiny of Chicago’s authority to act alone.

Communication Rift Widens Between Chicago And Springfield

Frustration over the proposal reflects long standing concerns about coordination between the city and state. Thirty Democratic legislators signed the letter opposing the plan, saying they were never consulted.

Representative Tarver criticized the administration’s legislative approach and the role of the mayor’s chief lobbyist, John Arena. “He seems to alienate everybody he comes into contact with… the more you are around him, the less you want to be around him.”

Several alderpersons voiced similar concerns. Alderman Matt O’Shea said the exchange highlights a broader breakdown in communication and that “there is no relationship.” Alderman Gilbert Villegas argued that Chicago had already missed a chance to secure a share of statewide sports betting revenue and called for closer cooperation to avoid being “screwed later on.”