DraftKings Shutters Wrigley Field Sportsbook Due to Tax Pressures

DraftKings has pulled the curtain on its Wrigley Field sportsbook in Chicago, Illinois, citing tax pressures as one of the chief reasons for the decision. The sudden announcement revealed May 31 as the sportsbook’s final day.

Wrigley Field Sportsbook Closes After Offering Betting for Two Years

As its name suggests, the Wrigley Field sportsbook is attached to the Wrigley Field ballpark, the home of the Chicago Cubs MLB franchise. The sportsbook’s bar and restaurant opened in 2023, with sports betting launching the next year.

In its statement, DraftKings said that May 31 will be the sportsbook’s final day. From then on, the sports lounge will remain open without the sportsbook aspect. However, players will still be able to use the DraftKings app from inside the lounge.

DraftKings to Take a More Focused Approach to Investing in the State

DraftKings cited Illinois’ recent tax changes as one of the chief reasons for ending the sportsbook operation. For context, local betting operators are required to pay a gross gaming revenue tax of between 20% or 40%, depending on their tier.

The tiered system means that all sportsbooks generating over $200 million in sports betting revenue a year have to pay the higher tax.  

While the tax rate was already high for successful operators, last year Illinois added a per-bet fee on top of it, further adding to operators’ woes. Under this regime, sportsbooks pay 25 cents per bet on their first 20 million wagers a year and 50 cents on every wager after that.

If that wasn’t enough, Chicago recently added a 10.25% tax on sports betting operators in the city. This ended up the straw that broke the camel’s back for DraftKings, forcing it to discontinue its Wrigley Stadium betting operations.

DraftKings stated that it is proud of what it has built alongside the Chicago Cubs, but will no take a “more focused approach” to its investments in Illinois.

DraftKings Poised for Growth

Despite the hurdles in Illinois, Macquarie analyst Chad Beynon recently expressed confidence in the company, saying that DraftKings has seen one of the most compelling structural growth stories in the gambling industry in recent times.

This was further supported by the rapid growth of the company’s prediction markets segment, DraftKings Predictions.