FY2027 Illinois Budget Plan Would Raise Casino Table Game Tax To 50 Percent

Illinois Governor JB Pritzker introduced a $57 billion FY2027 budget that includes a proposal to raise casino table game taxes through a new graduated structure tied to adjusted gross revenue.

Good to Know

• Top tax rate on table game revenue could reach 50 percent under the plan.
• Proposal is expected to generate about $120 million in additional annual revenue.
• Funds would support the Education Assistance Fund for student aid programs.

Current law taxes table games at 15 percent on adjusted gross revenue up to $25 million and 20 percent above that level. The new model would apply a tiered system similar to the structure already used for slot revenue.

Proposed rates would scale as follows:

1. Up to $25 million at 15 percent
2. $25 million to $50 million at 22.5 percent
3. $50 million to $75 million at 27.5 percent
4. $75 million to $100 million at 32.5 percent
5. $100 million to $150 million at 37.5 percent
6. $150 million to $200 million at 45 percent
7. Above $200 million at 50 percent

Fifteen of the sixteen casinos in the state would fall under the revised framework. The Chicago casino operates under a separate tax structure established through earlier legislation and would remain outside the change.

Based on current revenue levels, several properties would move into higher brackets. Rivers Casino Des Plaines, which generates nearly half of statewide table game revenue with $107.4 million in AGR, would land in the 37.5 percent tier. Wind Creek Casino would shift into the 22.5 percent level, while The Temporary in Waukegan and Grand Victoria Casino could reach that bracket before the fiscal year ends.

Pritzker wrote in the budget document:

“Over the years, the state and units of local government have received lower revenues from casinos, creating gaps in funding or forcing shifts in resources from other causes.”

Administration estimates project $589 million in new statewide revenue from various tax adjustments, with the table game portion directed to financial aid and grant support through the Education Assistance Fund.

Policy direction follows earlier gaming tax changes. In 2024, Illinois replaced a flat 15 percent sports betting tax with a progressive scale ranging from 20 percent to 40 percent. Lawmakers also approved a per wager surcharge of $0.25 per online bet, rising to $0.50 after the first 20 million wagers each year. That surcharge generated $62.2 million in the first six months of FY2026, exceeding earlier projections.

Sportsbooks in Chicago face an added 10.25 percent local tax adopted under the city budget. Some legislators have introduced measures seeking repeal of the statewide per wager fee and limits on municipal level sports betting taxes.

Structural regulation changes also appear in the FY2027 proposal. The plan calls for merging the Illinois Gaming Board and the Illinois Racing Board into a single Department of Gaming Regulation and Enforcement responsible for oversight of casino gaming, sports wagering, video gaming, horse racing, and off track betting.

The new agency would assume regulatory authority from both bodies and operate under an executive director supported by two assistant directors, with implementation targeted for July 1 at the start of the fiscal year.

Separate legislation introduced by state Representative Yolanda Morris would establish a gaming oversight officer tasked with policy recommendations, data collection, and coordination among agencies involved in regulating gaming and related activity.

Additional language in that bill amends the Video Gaming Act to address licensing standards connected to devices compliant with the Criminal Code of 2012. Chicago approved video gaming terminals as part of its 2026 municipal budget to help close a $1.1 billion deficit.

FAQ

What Is Changing In The Illinois Casino Tax Structure?

The budget proposes replacing the current two tier table game tax with a progressive system that can reach 50 percent for high revenue properties.

How Much Revenue Does The State Expect To Raise?

Officials estimate about $120 million annually from the table game adjustment.

Where Will The Additional Money Go?

Funds are slated for the Education Assistance Fund, which supports grants and student financial aid.

Will All Casinos Be Affected?

Fifteen casinos would fall under the new rates, while the Chicago casino remains under a separate framework.

Are Other Gaming Policies Included In The Budget?

Yes. The plan also proposes consolidating regulatory agencies and follows earlier increases to sports betting taxes.

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