DraftKings Says Chicago Tax Hike Forced Closure of Wrigley Field Sportsbook
Posted on: May 19, 2026, 08:18h.
Last updated on: May 19, 2026, 08:47h.
- DraftKings is closing its Wrigley Field sportsbook after just two years in operation
- The sports betting giant cited high and increasing taxes in Illinois and Chicago
- Rise of prediction markets also a potential factor
DraftKings has blamed ever-increasing sports betting taxes imposed in Illinois and Chicago for its decision to close its Wrigley Field sportsbook.
On Monday ‘(May 18), DraftKings announced that the last day to place an in-person sports bet at the sportsbook attached to the Chicago Cubs’ iconic stadium will be May 31. The DraftKings restaurant and bar began serving patrons in June 2023, but in-person wagering didn’t go live until March 15, 2024.
A statement from DraftKings said the sportsbook will remain open as a sports lounge, but no in-person betting will be offered come June. Of course, bets on the DraftKings app will still be available from within the space.
DraftKings at Wrigley Field is located at 1012 W. Addison Street, adjacent to Wrigley’s right-field corner.
Taxes Blamed
Illinois has one of the nation’s most aggressive tax structures on its retail and online sportsbooks.
Sportsbooks share between 20% and 40% of their gross revenue, or the amount of money oddsmakers keep after paying out winning bets, with the state. The tax rate is based on a graduated scale, with books generating over $200 million in annual sports betting revenue landing in the 40% tier.
Already facing one of the highest state tax rates, Illinois sportsbook margins were further pressured last year when the state imposed a first-in-the-nation per-bet fee. Sportsbooks pay the state 25 cents per bet they take on their first 20 million wagers a year. The tax doubles to 50 cents after the book exceeds 20 million bets.
Then, in January, Chicago rolled out a 10.25% tax on sports betting revenue generated from bettors located within the city’s limits. For DraftKings, it forced its hand to exit Wrigley.
The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook,” DraftKings explained.
“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. The venue itself will remain open, but in-person sports betting will no longer be offered at the location,” the release added.
Prediction Market Pressures
DraftKings did not single out prediction markets in its Wrigley announcement, but the online trading exchanges certainly aren’t helping the sports betting industry. Last year, prediction markets began offering trading on contracts linked to sports events, which critics say is essentially sports gambling.
Prediction markets, since they’re federally regulated by the Commodity Futures Trading Commission — not the Illinois Gaming Board — do not pay the state or city’s sports betting taxes. Therefore, the platforms regularly offer trading prices on sports events that are better than those on sportsbooks.
DraftKings runs a prediction market, DraftKings Predictions, in 48 states, including in Illinois. But in states where DraftKings offers traditional sports betting, its prediction market only offers financial markets.
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