Online sportsbooks can still operate in Chicago in new year after last-minute licenses granted

Online sportsbooks will be able to legally operate in Chicago after the city provided some 11th-hour licenses, just in time for the new year.

The Sports Betting Alliance, which represents operators like DraftKings, FanDuel and three other online betting sites, sued the city Tuesday and requested a temporary restraining order to block a new 10.25% sports betting tax that goes into effect Jan. 1.

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That tax, part of the recently approved budget, also required sports betting companies to be licensed by the city.

On Wednesday afternoon, the Alliance agreed to drop the request for a TRO, but is moving ahead with the lawsuit, which claims the city tax is unconstitutional.

If the judge sides with the city, the sportsbooks previously said they may have to close.

Chicago Mayor Brandon Johnson's Office said they do not comment on pending court cases

The video in the player above is from an earlier report.