DraftKings will shut down its retail sportsbook at Wrigley Field by the end of May. The decision comes as a result of increased wagering taxes in Illinois. The online operations of DraftKings in Illinois will continue. This move affects the two-year-old sportsbook that was launched in March 2024.
Closure Details
The last day to place bets in person at this location is May 31. However, the venue will remain open, transitioning to a sports bar under the DraftKings brand. Bets can be redeemed through June 30 or by mail. DraftKings cited Illinois’ high tax structure as a major factor in the decision. The company aims to focus its investments more strategically within the state.
Tax Increases Under Scrutiny
In 2024, Illinois heightened the tax rate on sports betting platforms, with certain platforms experiencing up to a 40% tax based on adjusted gross wagering revenue. Additionally, a tax of 25 cents per wager was established, increasing to 50 cents after a sportsbook handles over 20 million bets annually. Chicago added a new 10.25% tax on adjusted gross receipts from sports wagers within the city in January.
Ongoing Partnership with the Cubs
Despite the sportsbook’s closure, DraftKings will continue its partnership with the Chicago Cubs. The current venue at Wrigley remains under the DraftKings name as a sports bar featuring a menu and large video screens. Cubs’ plans include linking the bar directly to the ballpark concourse. The Cubs maintain their commitment to making the space an ideal gameday destination for visitors.
Illinois Sports Betting Landscape
The Illinois sports betting market has grown since its inception. Rivers Casino in Des Plaines launched the first state sportsbook in March 2020. Currently, there are 15 sportsbooks in Illinois. That figure will decrease to 14 following the closure of the Wrigley Field location. In 2022, Illinois sports wagering generated nearly $1.48 billion in revenue. Online betting was responsible for 98% of the revenue. FanDuel led the state with $552 million in revenue, followed by DraftKings at $500 million.
The retail operation at Wrigley Field accounted for $899,000 in adjusted gross receipts last year. DraftKings will lay off several employees connected to the retail sportsbook but remains committed to serving mobile sportsbook customers.