Illinois Brings Online Casino Bills Back Into the Attention

Online casino gaming is back on the table in Illinois as lawmakers reopen a broader discussion around digital wagering, taxation, and regulatory authority. The renewed push arrives alongside disputes over local sports betting taxes and concerns about how online gambling might reshape the existing casino workforce.

The effort reflects a wider reassessment of how Illinois manages gambling growth after several years of rapid expansion.

Good to Know

• Illinois lawmakers reintroduced online casino and online poker legislation
• The proposal includes a 25 percent iCasino tax rate
• Workforce protections target operators that reduced in state staffing

Rather than focusing only on casinos, the latest legislative activity touches multiple corners of the gambling ecosystem. State lawmakers continue to debate sportsbook tax levels, local authority, and digital expansion, setting the backdrop for a return of iCasino legislation.

Edgar Gonzalez Jr has again filed the Internet Gaming Act, House Bill 4797, after a similar proposal failed to advance out of committee last year. The bill would authorise the Illinois Gaming Board to license online casino operators statewide.

Under the proposal, each approved operator could offer up to three online casino skins. Revenue from iCasino play would be taxed at 25 percent, a rate that mirrors the lower tier of the state sportsbook tax structure.

The bill also sets an aggressive implementation schedule designed to move quickly after passage:

• Emergency regulations required within 90 days
• Temporary licenses available within 30 days
• Existing gambling rules used where feasible

Gonzalez paired the casino measure with House Bill 4802, aimed at legalising online poker. That proposal would allow Illinois to enter shared liquidity agreements with other states through the Multi-State Internet Gaming Agreement. Six states currently participate in the compact, allowing players to compete across state lines.

Opposition remains rooted in labor concerns. The National Association Against iGaming continues to argue that online casinos could divert revenue from land based properties and lead to job losses. In response, Gonzalez bill includes a restriction that would block licensing for companies that cut more than 25 percent of their Illinois workforce since February 2020.

Industry support has lined up on the other side. The Sports Betting Alliance has endorsed the move to bring casinos online in Illinois. The alliance represents bet365, BetMGM, DraftKings, Fanatics, and FanDuel.

Tax policy disputes elsewhere in the state continue to shape the debate. Illinois initially launched sports betting with a 15 percent tax. Lawmakers later adopted a tiered system ranging from 20 percent to 40 percent based on revenue. A per wager tax followed, prompting sportsbooks to adjust pricing and product offerings.

Local taxes have added another layer of friction. Brandon Johnson allowed the Chicago budget to take effect on Jan. 1 without signing it. The budget includes a 10.25 percent municipal tax on sports betting, a move that triggered state level backlash.

Dan Didech, chair of the House Gaming Committee, responded by filing House Bill 4171, which seeks to prevent municipalities from imposing their own sports betting taxes.

“When the Legislature legalised sports betting in 2019, it was never our intent to allow local governments to create their own rules for this industry,” Didech said: “Chicago’s proposal will hurt consumers, drive vulnerable people to predatory illegal markets and reduce state tax revenue. The city should work collaboratively with the state to ensure sound, informed policy decisions are made on this issue.”

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