Chicago Mayor proposes 10.25% online sports betting tax in 2026 budget
The proposal is part of mayor Brandon Johnson’s Protecting Chicago Budget plan.
US.- Chicago mayor Brandon Johnson has proposed a 10.25 per cent tax on adjusted gross sports-betting revenue as part of the city’s 2026 budget plan. The measure seeks to generate an additional $1.15bn without increasing property taxes.
If approved by the City Council, Johnson’s $16.6bn “Protecting Chicago Budget” would take effect on January 1, 2026 and would be in addition to Illinois’ progressive tax rate for licensed sportsbook operators. At the state level, the first $30m of adjusted gross revenue are taxed at 20 per cent, and the rate rises progressively up to a maximum of 40 per cent for revenue above $200m.
Johnson’s proposal says online sports betting wagers reached $48bn in the last five years and anticipates that the tax change would generate about $26m annually. The budget plan also includes a surcharge on Chicago’s largest employers, an adjustment to Personal Property Lease Tax and an updated tax structure for transport.
Johnson said: “To make Chicago more affordable for working families, the Protecting Chicago Budget advances a fair and balanced revenue strategy—one where everyone contributes in line with their capacity. Based on our citywide Budget Engagement Survey results, residents prioritized new revenues from a community safety surcharge, online sports wagering and increased vacant building fees.”
