The budget includes a more than 10% tax on sports wagering in the city.
The provision also imposes a new municipal licensing requirement.
Collection of both starts Thursday.
RELATED: Miami Heat guard Terry Rozier pleads not guilty to sports betting charges
The Sports Betting Alliance is asking a judge to block the collection, saying the taxes are unconstitutional.
If the judge sides with the city, the sportsbooks say they may have to close.
Chicago Mayor Brandon Johnson's Office said they do not comment on pending court cases
This is a developing story; check back with ABC7 Chicago for updates.