SBA sues Chicago over online betting tax

Suit claims that the state of Illinois has sole authority to license and tax online sports wagering in the state.

By Jim Talamonti | The Center Square

Published: January 1, 2026 6:22pm

(The Center Square) -

The Sports Betting Alliance (SBA) has filed a lawsuit against Chicago for the city’s new tax on online sports wagering.

The SBA complaint filed in the Circuit Court of Cook County Tuesday claims that the state of Illinois has sole authority to license and tax online sports wagering in the state.

The SBA filed but then withdrew a motion for a temporary restraining order after it said the city moved quickly to maintain the operations of legal platforms that provide customer protections not available in the illegal market.