DraftKings has announced that it will permanently close its retail sportsbook at Wrigley Field in Chicago, Illinois at the end of May.
DraftKings has announced that it will permanently close its retail sportsbook at Wrigley Field in Chicago, Illinois at the end of May.
In a statement published by the Chicago Tribune, DraftKings said the sportsbook would shut on 31 May. The operator only opened the sportsbook at the home of MLB franchise the Chicago Cubs in June 2023.
Setting out its reasons for the closure, DraftKings said that it was taking a more “focused” approach in Illinois. It also noted the ongoing impact of tax rates in the state and that it could not justify a standalone retail sportsbook.
“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 statement said. “The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook.”
The restaurant, bar and sports entertainment facilities within the sportsbook venue will remain open. DraftKings will also continue to operate online in Illinois, with players still able to access its sportsbook app.
Counting the cost of Illinois tax
DraftKings blamed tax as one of its reasons for closing the sportsbook. Illinois has in place a structured system for rates across online and land-based betting.
Rates range from 20% for annual gross revenue up to $30m, up to 40% for bets in excess of $200m. The size and reach of DraftKings suggests it is towards the upper end of this range.
However, online betting is harder hit when other fees are taken into account. Illinois applies an additional per-wager fee to online sportsbooks of $0.25 for each online bet for the first 20 million wagers placed each year, rising to $0.50 per bet after.
In addition, Chicago introduced a 10.25% city tax on online sportsbook revenue earlier this year.