Thirty Illinois House Democrats are urging Chicago alderpersons to reject Mayor Brandon Johnson’s plan to apply the city’s 10.25% amusement tax to online sports bets. Their Thursday letter to the full City Council cautioned that the proposal could spur other municipalities to pass similar taxes, ultimately pushing bettors toward unregulated offshore sites and slashing statewide revenue.
The request lands as Johnson faces a widening budget challenge. After the Finance Committee removed his corporate head tax, the mayor is already contending with a $100 million deficit in the proposed 2026 budget. If the sports betting tax — estimated to raise $26 million — is rejected, that shortfall will deepen.
Rep. Dan Didech, chair of the House Gaming Committee, argued that Chicago’s gain could be dwarfed by statewide fiscal damage if more than 200 Illinois cities follow suit. “If you increase the tax so it becomes cost prohibitive for gamblers, they will seek out overseas sites that… are more dangerous, more predatory, untaxed and unregulated,”Didech said. He warned that many offshore operators rely on cryptocurrency transfers: “Sometimes winners get paid out. Sometimes they don’t. Money is not kept in segregated players’ accounts.”
Existing State Tax Burdens Heighten Tensions
Rep. Curtis Tarver, chair of the House Revenue Committee, noted that Illinois has “already taxed sports betting to the hilt,” first raising rates from a flat 15% to as high as 40%, then taxing every bet. If Chicago decides to “pile on” with a local tax, Tarver said it could “cost them more than it would generate” by straining future requests for revenue or expanded home-rule authority. He warned that lawmakers may introduce “pre-emptive language or attempts to claw back” city powers if the measure proceeds.
The letter described the betting tax as a “missed opportunity for collaboration” and proof of an “ongoing communication gap” between Chicago and Springfield. It said, “Had the city engaged the General Assembly in advance… there may have been a path to shape a more sound and coordinated approach.”
Aldermen Cite a Breakdown in Communication
Tarver added that Johnson has struggled in Springfield due to the absence of a “coherent strategy” and poor early communication. He sharply criticized the mayor’s selection of former Ald. John Arena as his chief lobbyist, stating, “He seems to alienate everybody he comes into contact with. I’ve never seen somebody who, the more you’re around him, the less you want to be around him.”
Arena did not comment, and the mayor’s office offered no immediate response.
Ald. Matt O’Shea said he had not seen the letter but called it “another example of this administration’s failure to have a relationship and an open line of communication with Springfield.”Ald. Gilbert Villegas added that Chicago missed a chance to claim a share of the state’s sports betting tax when Cook County secured 2%, stressing the need for stronger cooperation to prevent future losses.
Source:
“Group of Illinois House Democrats urges City Council to kill Johnson’s proposed tax on online sports bets”, chicago.suntimes.com, November 20, 2025
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