DraftKings is shutting down its retail sportsbook located at Wrigley Field in Chicago on May 31, 2024 [1].
The closure highlights the tension between state revenue goals and the operational viability of sports betting operators in the U.S. market. As states implement more aggressive tax structures, companies may reduce their physical footprints to protect profit margins.
DraftKings said the decision stems from a new per-bet tax on internet wagers implemented by Illinois [1]. The company said this specific tax burden has made the operation of the retail site unsustainable [2].
Wrigley Field has served as a high-profile location for the operator, blending the experience of professional baseball with live wagering. However, the financial impact of the state's legislative changes outweighed the benefits of the retail presence [1].
The move comes as Illinois continues to refine its gambling laws to increase state funding. This shift has created a challenging environment for operators who must balance high overhead costs, and increasing tax obligations [2].
The sportsbook will remain open until the end of May 2024 [1]. Customers will have until that date to utilize the physical facilities at the stadium before the site ceases operations permanently [1].
“DraftKings is shutting down its retail sportsbook located at Wrigley Field”
This closure serves as a bellwether for the sports betting industry, suggesting that retail locations may be the first casualties when states increase wagering taxes. By citing the per-bet internet tax as the primary driver, DraftKings is signaling to regulators that aggressive taxation could lead to a reduction in physical investment and job losses within local markets.
