for early access to the latest igaming videos!
and get the latest igaming news first!
The fight over Chicago’s new gambling rules is far from over. The Sports Betting Alliance confirmed it has pulled back its request for an emergency restraining order but will continue pressing its broader case in court.
Filed in Cook County Circuit Court, the lawsuit challenges the city’s plan to impose a 10.25% tax on online wagers and require operators to secure local licenses beginning in 2026.
By withdrawing the TRO, the group signaled there was no longer a need for immediate intervention, yet it made clear the constitutional challenge remains. The Alliance insists Chicago lacks the authority to enforce the ordinance and says the dispute will now be decided on the merits as the case moves forward.
“We’re pleased to see the City of Chicago moved quickly yesterday to maintain the operations of legal platforms that provide customer protections not available in the illegal market. Given these developments, there was no longer any need for an expedited TRO,” the statement reads.
“The SBA will nevertheless continue to pursue in court resolution of the invalidity and unconstitutionality of the City’s recently passed license and tax ordinances. Chicago sports fans will continue to have the benefits of legal, regulated sports wagering without interruption heading into the new year.”
Court hearing planned for March
At the center of the case is a constitutional claim that only the State can authorize taxes or licensing tied to revenue and income, and that the General Assembly has never given Chicago that power. A hearing on those arguments is set for March.
Lawmakers in Springfield have already stepped in with their own proposal. In October, legislation was introduced to make clear that local governments cannot regulate, license, or tax sports betting.
Rep. Daniel Didech underscored that point, 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.”
