DraftKings has permanently shut down its Wrigleyville sportsbook, unable to establish a foothold in the competitive digital landscape. This closure marks a significant moment for in-venue sportsbooks, which have struggled to thrive.
The announcement came on Monday, as reported by The Chicago Tribune, revealing that the DraftKings venue, located at the intersection of Addison Street and Sheffield Avenue, had not performed well since its launch two years ago. Despite offering a lively sports pub atmosphere with numerous televisions and a variety of food options, the sportsbook aspect remained underutilized, primarily due to the convenience of mobile sports betting available in Illinois.
Illinois imposes a hefty tax burden on sports betting operators, with rates reaching around 50%. The state enforces a progressive tax of 20-40% on gambling earnings, in addition to a per wager tax that starts at 25 cents for the first 20 million bets and increases to 50 cents thereafter. Chicago also adds a 10.25% tax on net revenue, making profitability challenging for retail sportsbooks.
DraftKings issued a statement expressing pride in their collaboration with the Chicago Cubs but noted that the high operational costs and tax structure in Illinois necessitated a reevaluation of their investments in the state. They reaffirmed their commitment to mobile sportsbook customers.
The struggles faced by the Wrigley Field location reflect a broader trend within the industry. In-venue sportsbooks have been declining in popularity, with many bettors preferring mobile options. Fans attending games often choose to remain in their seats rather than spending time in a sportsbook.
Since its opening in March 2024, the DraftKings sportsbook only generated $17 million in handle, ranking it 13th out of 15 retail sportsbooks in Illinois. Similar closures have occurred in other cities, including those associated with the Phoenix Suns, Cincinnati Reds, Cleveland Guardians, and Washington Nationals.
In contrast, some markets like Washington, D.C., and Arizona continue to support in-arena sportsbooks. The Washington Commanders, for example, host a Fanatics Sportsbook within their stadium, while DraftKings has seen success at TPC Scottsdale in Arizona, indicating a potential model for future retail sportsbook operations.