CHICAGO – A group of sports betting corporations filed a lawsuit towards the City of Chicago looking for to briefly cease the implementation of a new legislation on sports wagers that’s set to enter impact within the new yr.
It was simply this month that the Chicago City Council authorised the new tax on sports betting to lift income and shut a greater than $1 billion projected deficit for 2026.
The lawsuit was filed on Tuesday in Cook County Circuit Court.
What we all know:
The group, known as the Sports Betting Alliance, stated it had been looking for readability on the legislation’s requirement for licensing to function within the metropolis. The corporations additionally claimed of their lawsuit that town lacks the authorized authority to impose licensing and taxing rules on sports betting.
“The Illinois General Assembly has never authorized the City to impose such licensing or taxes on online sportsbooks. Thus, the State has sole authority to license and tax online sports wagering in the State of Illinois,” the lawsuit stated.
The State of Illinois already licenses and taxes sports betting within the state. State lawmakers legalized sports betting again in 2019.
The alliance members argued that if the legislation have been to enter impact on Thursday, Jan. 1, as scheduled, it will power them to decide on between working in Chicago and not using a license or stopping all on-line sports betting, which might have an effect on their backside line and their clients.
Just days earlier than the new tax and rules have been authorised, Jeremy Kudon, the Sports Betting Alliance’s chairman, despatched a letter to Mayor Brandon Johnson asking him to delay their implementation. That would “allow operators to understand the requirements, prepare and submit complete applications, and obtain the necessary City licenses prior to enforcement,” in accordance with the letter.
A metropolis spokesperson didn’t instantly reply to a request for remark on the lawsuit.