The Sports Betting Alliance fired off a warning letter to Mayor Brandon Johnson on December 18. FanDuel, DraftKings and Fanatics make up the group.
They’re scheduled to meet with Johnson this Sunday, December 22. The topic? Changes to Chicago’s 2026 budget. But the operators say they might just pull out of Illinois entirely by January 1.
That’s not an idle threat. The companies run the platforms that Illinois bettors use every day.
Why Operators Can’t Work With This Budget
Johnson’s budget proposal adds a 10.25% tax on all online bets placed in Chicago. That stacks on top of Illinois’ existing 20-40% tax rate.
But here’s the real problem. The budget language mentions a new city license requirement. Yet there’s no actual licensing system in place for online sports betting operators.
“The City does not currently have a licensing rubric that contemplates online sports wagering operators,” the Alliance wrote in its letter. No defined terms. No application standards. No administrative procedures whatsoever.
Operators would have zero way to comply when the ordinance takes effect January 1. They can’t even prepare applications because Chicago hasn’t published any requirements.
What the Alliance Demands From Chicago
The letter asks Johnson’s office to build a proper licensing framework. And they want a 180-day delay before enforcement starts.
“It is urgent that your Office takes action to develop a cogent licensing framework and to delay the effective date by at least 180 days,” the Alliance stated.
Without that delay, licensed operators face a nasty choice. They can’t legally operate without all required licenses. So they’d have to shut down Chicago operations completely.
The Alliance points out that a shutdown would push bettors toward illegal platforms. Those sites skip consumer protection, age verification and responsible gaming rules entirely.
Illinois could lose millions in tax revenue. Maybe tens of millions, according to the operators. That directly undermines the budget’s revenue goals.
How This Budget Fight Plays Out
Chicago might vote on an alternate budget as soon as December 20. That’s two days before the scheduled Sunday meeting between Johnson and the Alliance.
The secondary licenses in question would go to management service providers. These are the operators that maintain betting platforms for in-state partners.
Illinois already increased per-bet fees this year. The Gaming Board implemented a $0.25 charge per wager. That jumps to $0.50 for all bets going forward.
The timing creates serious urgency. Operators need answers within two weeks if they’re supposed to comply by New Year’s Day. Johnson’s office hasn’t released any licensing framework yet, and the threat isn’t subtle. The Alliance made clear its members are “highly regulated entities that cannot lawfully operate without all required licenses.”
