Illinois legislators have advanced a bill to prevent the city of Chicago from taxing sports betting operators. HB4171 amends the Sports Wagering Act to deny home rule entities the power to regulate, license, or tax sports wagering.
The bill, which is sponsored by Rep. Daniel Didech (D) and has more than 30 co-sponsors, was approved 15-0 in the House Gaming Committee this week.
The bill now heads to the full House for consideration. If passed, it goes to the Senate, and if approved by that body, it would go to Gov. JB Pritzker (D), who could sign it into law.
Aiming To Eliminate Chicago Tax
The attempt to roll back the tax comes after Chicago Mayor Brandon Johnson included a 10.25% tax on revenue from wagers placed in the city as part of the city’s 2026 budget. That went into effect in January, but numerous legislators have sought to block the plan.
“When the Legislature legalized sports betting in 2019, it was never our intent to allow local governments to create their own rules for this industry,” Didech said when introducing the legislation in October.
Illinois already has one of the highest sports betting tax rates in the country. In 2025, lawmakers added a 25-cent tax on wagers for an operator’s first 20 million bets, which rises to 50 cents per bet beyond that threshold. The per-bet tax followed a tax increase in 2024 that instituted a progressive tax structure on operators up to 40%.
The per-wager tax had an immediate impact, with 28 million fewer bets since the tax went into effect in September compared to the same time the previous year. Didech, who chairs the House Gaming Committee, has also introduced legislation to repeal the per-bet tax completely.
Wisconsin Edges Closer To Legal Online Sports Betting
In other state sports betting news, the Wisconsin Assembly passed a bill with bipartisan support this week that would legalize online sports betting. The bill faced little opposition from lawmakers, according to the Wisconsin Examiner.
The Badger State legalized sports betting at casinos in 2021, but that didn’t include online and mobile betting. In November, Rep. Tyler August (R) introduced AB 601, which would legalize online betting through the state’s tribal groups.
There are 25 tribal casinos in Wisconsin and no commercial gaming properties. The bill requires renegotiated compacts with the state so that tribes could partner with sports betting operators. Companion legislation, SB 592, is being considered in the Senate.
