DraftKings Closure of Retail Sportsbook at Wrigley Field

DraftKings Shuts Down Wrigley Field Sportsbook

DraftKings is closing its retail sportsbook at Wrigley Field due to increased wagering taxes in Illinois. This small but prominent part of its business will shut down, though online operations in Illinois will continue beyond May 31.

“DraftKings has made the decision to discontinue onsite sportsbook operations at DraftKings Sportsbook at Wrigley Field following a review of our retail presence in Illinois,” the company said in a statement.

Impact of Tax Increases on Sports Betting

Illinois raised the tax rate for large online and retail sports betting platforms to as much as 40% in 2024. This change in tax structure contributed significantly to DraftKings’ decision to close the retail sportsbook. Last year, Illinois included a per-wager tax of 25 cents, increasing to 50 cents after a sportsbook fields more than 20 million bets per year.

“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 explained.

A significant factor in the closure was a new 10.25% tax implemented in Chicago on adjusted gross sports wagering receipts for bets placed either online or at retail sportsbooks in the city.

Transition to a Sports Bar

While retail sports betting at Wrigley Field ends, DraftKings will continue its partnership with the Chicago Cubs. The location will become a sports bar with amenities like video screens and seating, featuring a menu with wings and mozzarella sticks.

“DraftKings bar and restaurant will remain open on both game and non-gamedays, offering an elevated sports bar environment for Wrigleyville visitors year-round,” Cubs spokesperson Jennifer Martinez stated.

Illinois Sports Betting Industry Growth

Despite the closure, the sports betting industry in Illinois has grown since the first sportsbook launched at Rivers Casino in Des Plaines in 2020. As of now, 15 sportsbooks operate in the state, with a new retail venue at Wind Creek Chicago Southland adding diversity.

Last year, Illinois ranked second behind New York among all states with sports wagering, generating nearly $1.48 billion in revenue. Online sports betting constituted 98% of this revenue.

FanDuel led the Illinois market with $552 million in revenue, followed by DraftKings at $500 million. The retail location at Wrigley Field generated $899,000, a small portion of DraftKings’ total revenue.

DraftKings aims to continue serving mobile sportsbook customers, redirecting efforts towards online operations.