Chicago Betting Tax Plan May Be Stopped by State Lawmakers

Chicago’s recent talk about a new sports betting tax might soon become irrelevant if lawmakers in Springfield get their way. As city officials explore a 10.25% local betting tax as part of the 2026 budget, the state legislature is moving to make sure only Illinois—not its cities—has the authority to regulate or tax wagering.

Good to Know

• HB 4171 would confirm that the state legislature alone can impose sports betting taxes.
• Chicago’s 10.25% proposal could double the cost of smaller wagers.
• More than 100,000 residents have already voiced opposition to the plan.

House Bill 4171, introduced by Rep. Dan Didech, seeks to amend the Sports Wagering Act to close any gray areas that could allow local betting taxes. Didech, who leads the House Gaming Committee, said the intention behind Illinois’s 2019 legalization was to prevent cities from creating separate rules. He cautioned that Chicago’s plan could harm players and drive bettors to unregulated offshore platforms.

The dispute began after the Chicago Financial Future Task Force floated a city-level betting charge of 50 cents per wager, to be added to the state’s existing per-wager tax. That means a $1 bet placed inside city limits could effectively face a 100% tax rate.

For many Illinois bettors—most of whom place wagers of five dollars or less—the idea has not gone over well. Consumer advocates argue the proposal unfairly targets smaller players and could push them toward illegal markets.

Both the Illinois Attorney General’s office and the Better Business Bureau have warned that such a move might erode trust in regulated operators and reduce tax revenue collected by the state.

Growing Public Resistance

Public reaction has been swift. Over 100,000 Illinois residents have reached out to lawmakers since the proposal was made public, filling inboxes and social media threads with objections. Sports fans and bettors say they feel penalized for taking part in a legal market the state worked years to build.

While the legislature adjourned on May 31, lawmakers have made it clear that the issue isn’t over. When sessions resume on January 14, HB 4171 will likely be one of the first bills up for debate.

If passed, HB 4171 would effectively strip cities of the power to impose or collect sports betting taxes. It would reinforce a single, statewide system that ensures uniform rules for both players and operators. Industry analysts believe that such consistency protects Illinois’s betting ecosystem and helps maintain healthy competition.

For now, Chicago’s proposal faces an uncertain future—one that could end before it even starts.

FAQ

Why is Chicago proposing a betting tax?

City officials claim it’s part of a revenue-raising plan for 2026, focused on growing local betting activity.

What does House Bill 4171 do?

It reinforces that only the Illinois General Assembly can regulate or tax sports wagering, keeping local governments from adding extra layers.

When will the bill be discussed?

Lawmakers will revisit it when the next session opens on January 14, 2026.

Who opposes the betting tax?

Lawmakers, bettors, and consumer groups argue it could harm players and funnel money toward illegal operators.

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