Sports Betting Alliance withdraws temporary restraining order request, continuing legal challenge against Chicago tax

The Sports Betting Alliance (SBA) has issued an update after announcing it would be suing the City of Chicago over a new sports betting tax and licensing plan.

The lawsuit was filed in Cook County Circuit Court and aimed to stop the city from enforcing an ordinance that would bring in a 10.25% tax on online sports betting and require operators to get city licenses starting in 2026.

Now, however, the SBA has shared it has filed a notice to withdraw its motion for TRO (temporary restraining order) but says its complaint related to the constitutionality of Chicago’s proposed tax will continue to proceed on the merits in court.

Today, we filed a notice to withdraw our motion for TRO in our case against the City of Chicago. That said, our complaint related to the constitutionality of Chicago's proposed tax will continue to proceed on the merits in court.

Statement below: pic.twitter.com/NNShk5YcHe

— Sports Betting Alliance (@SBAllianceUS) December 31, 2025

The full statement reads as: “We’re pleased to see the City of Chicago moved quickly yesterday to maintain the operations of legal platforms that provide customer protections not available in the illegal market. Given these developments, there was no longer any need for an expedited TRO.

“The SBA will nevertheless continue to pursue in court resolution of the invalidity and unconstitutionality of the City’s recently passed license and tax ordinances. Chicago sports fans will continue to have the benefits of legal, regulated sports wagering without interruption heading into the new year.”

Chicago proposed a major sports betting tax hike in recent budget

The announcements from the SBA came after the city introduced its new budget, with the sports betting tax hike applying to online and mobile that are verified as being placed within Chicago.

It’s thought that this tax could bring in at least $26 million a year which would help to support the city’s overall $16.6 billion spending plan.

Once the news was out, the SBA also made it clear they were pushing back on the city’s plan to require operators to get municipal licenses, arguing that Chicago hasn’t put a workable licensing system in place. The complaint stated that the city “has been incapable of timely implementing the licensing scheme it now claims the Ordinance requires.”

Featured Image: Credit to Chris Rycroft, CC 2.0 license

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