Attorney General Predicts Online Casinos Will Come to Illinois

Illinois appears to be on track to eventually legalize online casino gaming, according to Attorney General Kwame Raoul. While there is no set timeline, Raoul suggested that iGaming could become part of the state’s ongoing push to grow its gaming industry.

Good to know

• Illinois is already one of the largest gaming markets in the U.S., second only to New York in sports betting revenue.
• Online casinos could generate far more tax income than sportsbooks, according to industry advocates.
• Concerns from land-based casinos remain the main political roadblock, not moral or social objections.

Raoul made the comments during a session with the National Council of Legislators from Gaming States, hinting that online slots and table games will likely be the next step in Illinois’ gaming expansion. Though he no longer votes on legislation, Raoul previously served nearly 15 years as a state lawmaker before becoming Attorney General in 2018.

He gave no exact date for when the legislature might act, and lawmakers are not expected to take up an iGaming bill in 2025. However, the 2026 session could bring new momentum to the discussion.

Illinois has already established a wide base for gambling. The state offers retail and riverboat casinos, legal sportsbooks, a state lottery, and more than 40,000 video gaming terminals across bars and other locations. In 2024 alone, these combined efforts brought in around $1.7 billion in tax revenue. That number is expected to rise in 2025, Raoul said.

Advocates for online casino gaming argue it would add another powerful source of tax income. In states where both sportsbooks and iCasinos are legal, online slots and table games tend to generate far more revenue. Still, iGaming remains far less common across the country. While 39 states allow some form of sports betting, only seven have legalized online casinos.

In Illinois, resistance to iGaming does not stem from moral or religious concerns. Instead, the pushback comes mainly from operators of physical casinos who fear that digital competition could cut into their revenue. Some also worry about potential job losses.

Illinois could become a national leader in iGaming if legalized. Given its high population and existing gambling infrastructure, experts believe it could produce tens of billions in annual betting volume and bring in hundreds of millions in taxes.

The debate over iGaming comes just as Illinois raises its gambling taxes again. A new tiered tax system was introduced in 2024, with rates rising based on revenue thresholds. Lawmakers also passed an additional tax on individual bets earlier this year, further affecting the market.

Major sportsbook operators like FanDuel, DraftKings, and Fanatics have pushed back on the tax hikes. FanDuel and DraftKings handle about 75% of all legal wagers in the state. Each company has already confirmed it will pass the higher costs on to bettors.

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