Big news in the sports betting world, specifically in Chicago. DraftKings announced today that it will be closing its sportsbook operation at Wrigley Field, just two years after its launch.
According to CBS News, the Boston-based sports betting company said it has decided to discontinue sportsbook operations at DraftKings Sportsbook, located at the northwest corner of Addison Street and Sheffield Avenue, adjacent to the historic ballpark.
DraftKings is shutting down its retail sports betting operation
While DraftKings Sportsbook will no longer offer in-person sports betting, it will remain open as a restaurant, bar, and sports entertainment venue.
DraftKings said:
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 cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook. We remain committed to serving our mobile sportsbook customers.
Sportsbook operators are subject to state taxes ranging from 20% to 40%. Since July of last year, Illinois sportsbooks have been required to pay a fee of $0.25 on the first 20 million online bets placed statewide each year, and $0.50 for every bet beyond that threshold.
Additionally, the budget plan approved by the City Council in December 2022 instituted a 10.25% tax on the adjusted gross receipts from all sports bets placed within the city.
