DraftKings will close its retail sportsbook at Chicago’s iconic Wrigley Field at the end of May due to higher wagering taxes in Illinois. While the operator will continue offering online sports betting in the state, the shutdown marks the end of in-person betting operations at the Wrigley venue less than two years after it opened.
“DraftKings has made the decision to discontinue onsite sportsbook operations at DraftKings Sportsbook at Wrigley Field following a review of our retail presence in Illinois,” the company said in a statement. “The venue itself will remain open, but in-person sports betting will no longer be offered at the location.”
Although the betting operation is shutting down, DraftKings said the venue will continue operating as a sports bar at Wrigley Field. The company pointed to rising state and local tax burdens as a major factor behind the decision to exit the retail sportsbook business in Chicago.
Illinois lawmakers increased sports betting taxes in 2024, raising rates to as high as 40% for larger online and retail operators based on adjusted gross wagering revenue. The state also approved a per-wager tax structure that charges sportsbooks 25 cents per bet, increasing to 50 cents after an operator exceeds 20 million wagers annually.
Adding to those costs, Chicago introduced a 10.25% tax in January on adjusted gross sports wagering receipts from bets placed either online or at retail sportsbooks within city limits, further increasing operational expenses for companies like DraftKings.
DraftKings’ decision to close its retail sportsbook at Wrigley Field is an example that shows that higher taxes on sports betting operators can ultimately hurt consumers and reduce investment in the market.
As states continue looking for additional tax revenue from legalized sports betting, operators have increasingly warned that rising tax burdens can force companies to scale back retail operations and reduce promotions. The closure of a high-profile sportsbook tied to one of Major League Baseball’s most iconic venues may strengthen those arguments.
Retail sportsbooks are often more expensive to operate than online platforms because of staffing, licensing, and real estate costs. When layered state and local taxes significantly increase operating expenses, companies may decide the business is no longer financially viable, even in major sports markets like Chicago.
Consumers can feel the impact indirectly through reduced bonus offers, fewer promotional credits, and a less competitive betting environment overall. Excessive tax rates could also push bettors toward offshore or unregulated platforms that do not face the same compliance costs or consumer protections.
The Wrigley Field closure may now serve as a case study for lawmakers in other states weighing additional taxes on legal sports betting operators, particularly as more jurisdictions debate how aggressively to tax the growing industry.
The closure of DraftKings’ Wrigley Field sportsbook also reflects a broader industry trend as online sports betting continues to outpace retail wagering across the United States.
Retail sportsbooks were initially viewed as a key part of the legalized betting experience following the expansion of sports wagering in 2018. However, many operators have increasingly shifted focus toward mobile platforms that generate significantly higher betting volume at lower operating costs.
Online sportsbooks now account for the overwhelming majority of sports betting revenue in most regulated states, with bettors favoring the convenience of placing wagers from their phones rather than traveling to a physical location. For operators, mobile betting also eliminates many of the expenses associated with retail sportsbooks.
That shift has led several operators to reevaluate the long-term value of standalone retail sportsbooks, particularly in markets with higher tax rates or additional local operating costs, like Chicago. Even sportsbooks located inside stadiums and entertainment districts have struggled to match the profitability of online platforms.
