Illinois legislators are making another attempt to legalize online casino gaming. Senator Cristina Castro and Representative Edgar Gonzalez have introduced SB 1963 and HB 3080, respectively, to establish the Internet Gaming Act. If approved, the Illinois Gaming Board would oversee internet-based casino operations, further expanding the state’s gambling industry.
This marks the second consecutive session the lawmakers have pushed for iGaming. Their latest proposals include a tax increase on adjusted gross revenue, raising the rate from 15% to 25%. Despite facing challenges in the previous session, they aim to address concerns and refine regulations in this new attempt.
Illinois’ Dominance in the Gambling Sector
Illinois ranks as the second-largest sports betting market in the U.S. and leads in video gaming terminals (VGTs), with nearly 8,700 licensed operators managing over 48,700 machines. In 2024 alone, VGTs generated $884.2 million in tax revenue—significantly more than the $345.2 million from casinos and $244.2 million from sports betting.
However, the push for online casinos has sparked concerns among VGT stakeholders. Many fear iGaming could reduce revenue for physical gaming establishments, impacting employment in the sector.
The proposed legislation sets strict guidelines for online casino operators. They must pay a $250,000 licensing fee and can run up to three branded iGaming platforms, a more flexible approach than Illinois’ sports betting system.
A key provision in the bill prohibits the Illinois Gaming Board from licensing any operator that has reduced its workforce by 25% or more since February 28, 2020. However, the legislation does not clearly define “workforce,” leaving room for debate. All revenue from online gaming would be taxed at 25% and directed to the State Gaming Fund.
To promote industry diversity, operators must submit annual Diversity, Equity, and Inclusion (DEI) reports outlining spending on businesses owned by women, minorities, veterans, and individuals with disabilities. They must also host public workshops and job fairs to improve representation in gaming.
Additionally, the bill allows Illinois to join multi-state online gaming compacts, expanding opportunities for interstate iGaming. Meanwhile, another proposal—Senator Lakesia Collins’ SB 1224—seeks to reform Daily Fantasy Sports regulations by legalizing all DFS formats and imposing a tax between 10% and 15% on operators.
SB 1963 and HB 3080 have been sent to their respective legislative committees. If passed, the bills would take effect immediately.
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