Sports Betting Alliance sues Chicago over tax in new budget

CHICAGO (WLS) -- The Sports Betting Alliance is suing the city of Chicago over the new budget.

The budget includes a more than 10% tax on sports wagering in the city.

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The provision also imposes a new municipal licensing requirement.

Collection of both starts Thursday.

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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.