After a tough weekend on the South Side, Cubs fans now have to deal with losing in-person betting at the DraftKings Sportsbook at Wrigley Field.
The company blames Illinois’ high taxes on sports wagering as the reason for its decision, saying in-person betting will end May 31.
The nearly three-year-old venue, adjacent to Wrigley Field, will still remain open as a restaurant. Currently, it’s the only retail sportsbook in Illinois connected to a sports venue.
“While we are proud of what we have built alongside the Chicago Cubs, we are taking a more focused approach to where we invest in the state. The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook. We remain committed to serving our mobile sportsbook customers,” DraftKings said in a statement.
Illinois ranks fifth in the U.S. for highest sports betting taxes and is number one in the Midwest, according to the Illinois Policy Institute.
When sports betting became legal in Illinois in 2019, sportsbooks paid a flat 15% tax on revenue earned. Illinois lawmakers have since raised the tax to as high as 40%, according to the institute. Last year, the state added a per-wager tax of 25 cents on the first 20 million wagers per year, then 50 cents for every bet beyond that.
“It [high taxes] does pose a challenge in having to pass it on to consumers,” Parker Winslow, senior manager of corporate communications at DraftKings, said. “Having to pass that cost onto consumers generally makes the legal industry less appealing and sends customers to illegal markets.”
Winslow said DraftKings will continue to operate its online sportsbooks across the state.
He said the decision to end in-person betting at Wrigley Field means laying off about two dozen employees.
The Cubs said in a statement that the DraftKings bar and restaurant will remain open.
“Later this season, we expect to create a seamless flow between the bar and the ballpark concourse, making the space a great gameday option for Cubs ticketholders. DraftKings has been a great partner and will continue to be the Official Sports Betting and Daily Fantasy Partner of the Chicago Cubs,” the Cubs said.
