DraftKings Pulls In-Person Betting From Wrigley Field on May 31, Blaming Illinois Tax Structure

DraftKings will end in-person sports betting at its Wrigley Field sportsbook on May 31, the company announced on May 18, citing Illinois’ mounting tax burden on sports wagering as the reason the standalone retail operation can no longer be justified. The decision ends a two-year run at one of the country’s most prominent ballpark-adjacent betting venues and raises broader questions about the viability of physical sportsbooks in high-tax states.

The sportsbook launched in March 2024 as part of a reported $100 million, 10-year deal with the Chicago Cubs. It was the only retail sportsbook in Illinois connected to an active sports venue. Despite its high-profile location just outside Wrigley’s southeast corner, the economics ultimately proved unsustainable under the state’s layered tax structure.

What the Illinois Tax Structure Actually Costs

Illinois imposes a graduated revenue tax on sports betting operators alongside a per-bet charge on online wagers. The state collects 25 cents per internet-based wager on the first 20 million bets annually, rising to 50 cents per bet thereafter. For a company like DraftKings, which processes millions of wagers across a large mobile user base in Illinois, those per-bet fees accumulate into significant overhead on top of what they already pay in state revenue taxes. Running a physical location with staff, security, and infrastructure adds further costs that mobile-only competitors simply do not face.

“The cost of operating in Illinois, including its high tax structure, makes it more difficult to justify continued investment in a standalone retail sportsbook,” DraftKings said in a statement. “We remain committed to serving our mobile sportsbook customers.” The Cubs said the building itself will stay open as a DraftKings-branded sports bar, with plans to connect it to the ballpark so ticket holders can visit during games.

What Comes Next for Illinois Bettors

Illinois bettors who used the Wrigley location for in-person wagering will need to shift to mobile platforms after May 31. Illinois sportsbooks are widely available on mobile, and DraftKings will continue operating its app in full across the state. The closure is unlikely to disrupt the broader Illinois market, which has been predominantly mobile since the state launched legal sports betting in 2020.

What the Wrigley closure does signal is a potential turning point for retail sportsbooks in costly markets. As states raise taxes on operators, the thin margins on physical locations become harder to defend. DraftKings’ decision could encourage other operators running retail sportsbooks in high-tax environments to reassess whether their footprints make financial sense, particularly as online handles continue to dwarf in-person wagering across most legal markets.