Chicago Halts Sports Betting Shutdown, SBA Pursues Suit

Mayor Brandon Johnson’s administration issued new “Metropolis licenses” to Chicago sports activities betting corporations to keep away from a New Yr shutdown. [Image: Shutterstock.com]

Present goes on

The Metropolis of Chicago has prevented a possible shutdown of sports activities betting on January 1, which was threatened by the Sports activities Betting Alliance (SBA), by granting sportsbooks a last-minute concession.

Johnson’s administration issued new “Metropolis licenses

Dealing with a brief restraining order filed by the SBA, Mayor Brandon Johnson’s administration issued new “Metropolis licenses” to sports activities betting corporations on December 31. 

The commerce physique took to X the identical day to announce it was dropping its short-term restraining order towards the Metropolis, however nonetheless pursuing an present swimsuit towards it:

The prevailing swimsuit by the SBA claims Chicago’s new tax on on-line sports activities betting, which went into impact January 1, is unconstitutional and invalid.

Concession granted, swimsuit pursued

The SBA first threatened a New Yr Chicago sportsbook shutdown in December over the Metropolis’s failure to situation licenses to the ten sportsbooks working in Illinois.

Since Metropolis Corridor has now issued licenses, the SBA’s restraining order towards Chicago is now moot. It was launched over the danger posed by its member corporations working with out licenses.

“We’re happy to see the town moved rapidly yesterday to take care of the operations of authorized platforms,” acknowledged the commerce group in response. 

unconstitutionality of the Metropolis’s just lately handed license and tax ordinances.”

Regardless of the ten sportsbooks gaining licenses, the SBA isn’t accomplished with Mayor Brandon Johnson’s administration, stating it might “pursue in court docket decision of the invalidity and unconstitutionality of the Metropolis’s just lately handed license and tax ordinances.”

Metropolis Corridor’s tax hike bites deep into Illinois’ already steep sports activities betting levies, which features a graduated charge of 20-40% on adjusted gross income, and 2025’s new per‑wager cost.

Not constitutional 

The SBA swimsuit contends that resulting from Illinois’ regulatory set-up, the Metropolis of Chicago doesn’t “have the ability to situation licenses.”

The Illinois structure, claims the SBA, doesn’t enable for “a house rule unit such because the Metropolis of Chicago to demand a license or impose taxes “until the Common Meeting has expressly granted that energy to the house rule unit.” 

Because the Common Meeting has not expressly given Metropolis Corridor that energy, the SBA is making the realm of uncertainty the main focus of its problem towards the tax hike.