A budget shortfall is helping to raise optimism about iGaming in the state
Efforts to legalize online casino gambling in Illinois are gaining momentum as lawmakers push for new legislation. Senator Christina Castro and Representative Edgar Gonzalez have introduced Senate Bill 1963 and House Bill 3080, aiming to establish the Internet Gaming Act. This marks the second attempt to bring regulated online casinos to the state, following an unsuccessful effort in the 2023-2024 legislative session.
If passed, the bills would allow casino operators to run multiple online gaming brands under a three-skin model. A key change in the new proposals is an increase in the tax rate from 15% to 25%, reflecting the state’s need for additional revenue. Another notable provision prevents any casino or sportsbook that reduced its workforce by 25% or more since February 2020 from obtaining a license, an effort to protect jobs in the gaming sector.
Illinois already has a strong gambling industry, with nearly 8,700 licensees operating almost 48,700 Video Gaming Terminals (VGTs) across the state. In 2024, VGTs generated $884.2 million in state tax revenue and $152.4 million for local governments. Meanwhile, land-based casinos contributed $345.2 million in taxes, and sports betting added $244.2 million.
With Illinois facing a projected $3.2 billion budget shortfall for fiscal year 2026, supporters argue that legalizing online casinos could provide much-needed funds. However, opposition remains, particularly from VGT operators who worry about losing customers. Additionally, concerns have been raised about the workforce protection clause, as critics argue that the definition of “workforce” is unclear.
The debates continue, and the Prairie State must decide whether to embrace online casino gambling or maintain the current system. The outcome will have lasting effects on the state’s gaming industry and financial landscape.
