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A push to stop Chicago from enforcing its local sports betting tax gained momentum this week. Yesterday (Feb 18), the House Gaming Committee voted 15‑0 in favor of Rep. Daniel Didech’s HB 4171.
Didech, who chairs the committee, introduced the measure with support from more than 30 co-sponsors, including nearly half of the committee members.
With unanimous backing in committee, the proposal now moves to the full House for debate and a possible vote. If approved, the bill would prevent Chicago from continuing to collect its city-level betting tax.
Illinois’s tax structure is different
HB 4171 seeks to strip home rule units, cities with more than 25,000 residents or counties led by an elected chief executive, of the power to regulate, license, or tax sports wagering. That move directly affects Chicago and Cook County, both of which qualify under home rule authority.
Illinois has already reshaped its tax system in recent years. In 2024, the state shifted to a revenue‑based model for online sports betting, and in 2025, it added a per‑wager tax that stirred controversy.
Chicago then went further, with Mayor Brandon Johnson’s 2026 budget introducing a 10.25% levy on sportsbook revenue from bets placed inside the city. That tax took effect on January 1, 2026, even as operators represented by the Sports Betting Alliance challenged the city in court over licensing issues.
“The regulation and licensing of sports wagering, including, but not limited to, the imposition of fees, surcharges or other costs for the privilege of conducting or participating in sports wagering, are exclusive powers and functions of the State,” the bill’s text reads.
HB 4171 was filed last October
Rep. Daniel Didech introduced HB 4171 in October, only days after Chicago’s plan for a local sports betting tax became public. He explained in a release at the time that the measure was a ‘direct response’ to the city’s proposal.
The bill would also make Cook County’s existing 2% levy on sports betting revenue unlawful.
Didech stressed the legislature’s original intent when sports betting was legalized in 2019, saying, “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.”
Support quickly lined up behind the bill. Witness slips were filed by the Illinois Gaming Board, the Sports Betting Alliance, and Caesars in favor of the measure. Opposition came from Chicago officials, with Mayor Brandon Johnson’s Deputy Director of State Legislative Affairs, John Arena, listed among those against it.
Other tax reduction bills still active
Illinois’s layered tax system has made the state one of the costliest places for sportsbooks to operate, and HB 4171 is not the only measure aimed at easing that burden.
In the Senate, SB 2800 mirrors Didech’s proposal and has already drawn support from 12 co‑sponsors. It is waiting for consideration in the Gaming, Racing and Wagering Committee.
Another proposal, SB 2760, takes a different approach by requiring that any fees imposed by municipalities on sports betting be deducted from their share of certain state funds, with those funds redistributed to other counties and cities.
Didech’s second measure, HB 5143, also targets statewide taxes. The bill seeks to repeal Illinois’ per‑wager tax this summer, ending the levy after only a year in place following a reduction in betting activity in the state.
Source: SBCAmericas
