DraftKings announced it will close its Wrigley Field sportsbook on Sunday, May 31, due to Illinois’ taxing structure. The retail sportsbook, which opened in March 2024, will continue to operate as a sports bar without in-person betting. DraftKings cited the high cost of operating in Illinois, including a 25-cent tax on the first 20 million internet-based bets annually, which increases to 50 cents thereafter, as a significant factor in their decision.
The sportsbook, located at the southeast corner of Wrigley Field, was part of a $100 million, 10-year deal with the Chicago Cubs. While the Cubs are not involved in the gambling side, they share some food and beverage revenue with DraftKings. According to a report by WGN-TV, DraftKings will continue its online operations in Illinois.
The closure comes amid rising tensions over Illinois’ sports betting tax structure. The state imposes one of the most aggressive tax regimes in the country, charging a 10.25% tax on net gambling revenue. This has led to a significant drop in betting activity, as reported by Capitol News Illinois.
DraftKings’ decision highlights the ongoing battle over sports betting taxes in Illinois, with some state lawmakers pushing for uniform regulations to prevent municipalities from imposing additional taxes. The Sports Betting Alliance, representing major sportsbooks, has challenged Chicago’s local tax as unconstitutional.
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