DraftKings is pointing to recent gambling tax changes in Illinois as reason for shuttering the operations of its brick-and-mortar sportsbook located at historic Wrigley Field.
DraftKings made the choice less than three years after opening its doors, a spokesperson confirmed to SBC Americas. The company opened DraftKings Sportsbook at Wrigley Field in March 2024, providing visitors with a 17,000-square-foot venue. Other facts about the DraftKings Sportsbook on the North Side:
- The facility was the result of a 10-year, $100m deal between the Cubs and DraftKings
- The retail sportsbook will stop accepting in-person wagers on May 31
- Customers are allowed to cash out winning bet slips at the facility through June 30
- It is the only brick-and-mortar sportsbook in Illinois attached to a sports venue
While Chicago residents and visitors will be unable to place wagers at the sportsbook after May 31, the facility will maintain the operation of its restaurant and bar. DraftKings will maintain its branding of the sports bar despite no longer accepting retail sports wagers.
“DraftKings has made the decision to discontinue onsite sportsbook operations at DraftKings Sportsbook at Wrigley Field following a review of our retail presence in Illinois,” the DraftKings spokesperson said in a statement to SBC Americas. “The venue itself will remain open, but in-person sports betting will no longer be offered at the location.”
Tax rules cited as DraftKings closes retail sportsbook
According to the Illinois Gaming Board, more than 90% of sports betting revenue derives from online betting. DraftKings, though, says it is closing the retail sportsbook because of Illinois new tax structures for sportsbooks.
“While we are proud of what we have built alongside the Chicago Cubs, we are taking a more focused approach to where we invest in the state,” continued the DraftKings spokesperson. “The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook. We remain committed to serving our mobile sportsbook customers.”
In 2024, Illinois Gov. J.B. Pritzker signed a budget that taxes operators on a sliding scale, a major change from when the state began sports wagering XXX years earlier:
- Sportsbooks are taxed at 20% rate on the first $30m in annual revenue that increases to 25% for revenue between $30m and $50m
- Operators face a 30% rate for revenue ranging between $50m and $100, and revenue that ranges from $100m to $200m leads to a 35% tax rate
- Sportsbooks that collect more than $200m face a 40% rate
A year after implementing the sliding scale for online sports betting operators, Illinois once again adjusted tax obligations by imposing a per-wager tax in the state. Licensed operators in Illinois are charged 25 cents per wager placed on their platforms. The per-wager tax increases to 50 cents after the first 20 million wagers accepted in a year.
DraftKings responded to the per-wager tax by implementing a 50-cent transaction fee on all wagers placed in Illinois. FanDuel also implemented a 50-cent surcharge for its Illinois online wagers, but the operator temporarily waived the fee in April until June 19, the latest possible game date for the NBA Finals. Other licensed sportsbooks in Illinois have responded to the 50-cent per wager tax by raising their minimum bet limits.
Additional tax in Chicago for DraftKings
Chicago’s gambling market also provides DraftKings with an additional tax obligation.
Mayor Brandon Johnson’s latest budget levies a 10.25% local tax on online wagers placed in Chicago as a way to generate additional revenue to close a $1.1bn budget gap.
Several lawmakers take issue with Chicago’s local tax and have introduced a measure to prevent the city from imposing the tax on sports betting. The measure, House Bill 4171, was filed in October 2025 and currently awaits a third reading by a subcommittee.
Meanwhile, the Sports Betting Alliance (SBA) filed a lawsuit against Chicago and the Chicago Department of Finance. The suit was filed over Chicago’s local tax and a new city-specific licensing obligation that requires operators to pay an upfront $50,000 licensing fee.
Under the city-specific license rules, annual renewals are set at $25,000. The SBA’s membership includes bet365, BetMGM, DraftKings, Fanatics and FanDuel.
Despite the closure of retail sports wagering operations at Wrigley Field, DraftKings and the team will continue to upgrade the facility. DraftKings and the Cubs plan to construct a connector that will allow baseball fans to walk between the sports bar and the ballpark.
