BREAKING: Chicago City Council Lifts Sports Betting Ban, Which Means Stadium Sportsbooks Are A Go

On Wednesday, the Chicago City Council voted to lift the ban on sports betting in the city, paving the way for retail sportsbooks to operate in Chicago stadiums.

A 2% income tax will be imposed on the profits generated from sports betting.

According to the 2019 Sports Wagering Act, sportsbooks are permitted in Illinois facilities. However, in order to move forward, restrictions on sports betting in Chicago needed to be lifted.

During Wednesday’s meeting, Alderman Walter Burnett’s ordinance was approved. Prior to this, at the Zoning and License meeting on Monday, several Chicago sports franchise owners, such as Tom Ricketts of the Cubs, Rocky Wirtz of the Blackhawks, and Jerry Reinsdorf of the Bulls and White Sox, voiced their support for stadium betting.

Ricketts discussed the agreement the Cubs have in place with DraftKings to build a sportsbook at Wrigley Field during Wednesday’s meeting.

This process has encountered some bumps along the way, as certain officials and business owners have openly criticized each other.

Here is an explanation of the journey that brought us to this moment and a glimpse into the future of sports facilities in Chicago.

Bluhm was the most outspoken opponent of Chicago’s stadium activities gambling.

Neil Bluhm, co-founder of Rush Street Gaming, vehemently opposed the idea of allowing betting in Chicago stadiums. Rush Street is responsible for two of the five casino proposals in the city, and Bluhm was determined to avoid any potential competition from sports venues.

Bluhm saidNovember:

It is speculated that individuals who gamble on table games and slot machines may also participate in sports betting, making up approximately 20% of our customer base. However, this claim is based solely on speculation.

Mayor Lori Lightfoot has consistently advocated for sports betting in Chicago stadiums. In reply to Bluhm’s comments, she expressed:

Some individuals who currently operate sportsbooks in their own casinos have issued cautionary statements in an attempt to discourage their establishment in Chicago. Despite their warnings, they have failed to offer any convincing evidence to back up their claim that sportsbooks could negatively impact a casino in Chicago. To date, we have not seen any concrete proof to support this argument.

and added:

Many individuals who may benefit from preventing sports teams from running their own sportsbooks often voice their opinions, but I am more focused on concrete evidence and statistics rather than mere talk.

During the Monday meeting, Reinsdorf had private conversations with Bluhm, where he raised concerns about Bluhm’s intentions. The owner of the Bulls and White Sox expressed:

It is confusing that Neil Bluhm has actively sought to operate sportsbooks in our buildings, even though he has expressed opposition to them. This continued even after the approval of blackjack in Chicago.

He went on:

He was unsure about his choice to host a game in Chicago and did not consider the possibility of the chosen person being taken advantage of by these books. If he had been successful at that time, would we be having this conference now?

Bluhm confirmed the city’s intention to open five mini-casinos, but did not address Reinsdorf’s statement. Ricketts described the sportsbook as more of a sports bar-restaurant and anticipated that many patrons would visit without placing bets.

What does the future hold for us?

After the law was passed, the following locations are now authorized to provide retail sports betting.

• Field Wrigley
• Guaranteed Rate Discipline
• United Center
• Soldier Field
• Arena Wintrust

Ricketts has announced that they will begin construction on their betting partnership with DraftKings immediately, with the goal of launching it before the 2023 campaign.

While not all venues currently have formal alliances, it is possible that we may see some new partnerships emerge in the near future.

It is important to mention that there is heavy FanDuel branding at Bulls and White Sox games, even though the United Center is shared by the Bulls and Blackhawks.

It is likely that four out of five of these venues will offer retail sports betting in the future. The status of Soldier Field is uncertain as the Bears may move to Arlington Heights.

Bluhm remarked on the financial consequences, stating:

If our calculations are accurate, the city stands to lose up to $12 million per year, potentially impacting the success of the new Chicago casino.

The city anticipates that these sportsbooks will bring in an estimated annual revenue of $400,000 to $500,000. It is important to keep in mind that this is a new concept, making precise forecasting challenging.

Regardless of who is right, sports betting is making its way to Chicago stadiums. The sports wagering sector in Illinois is flourishing, with even more advancements expected in the coming years.