An Illinois legislator is renewing efforts to bring online casinos to the state.
Representative Edgar Gonzalez Jr has refiled the Internet Gaming Act, HB 4797, aiming to legalise iCasino gaming in Illinois. Gonzalez introduced an identical measure last year, but it stalled in committee and failed to advance.
Under the proposal, the Illinois Gaming Board would be authorised to license online casino operators, with each licensee permitted to run up to three digital casino platforms. Online casino revenue would be taxed at 25%. The bill also instructs the regulator to adopt emergency rules within 90 days of enactment, while temporary licences could be issued within 30 days by relying on existing gambling regulations where feasible.
Gonzalez also put forward HB 4802, a separate bill that would legalise online poker. His framework would allow Illinois to join interstate compacts, enabling shared online poker liquidity with other participating states. Currently, six states are members of the Multi-State Internet Gaming Agreement, which permits players to compete across state borders.
The National Association Against iGaming continues to oppose iCasino measures nationwide, citing concerns over lost revenue at physical casinos and potential job cuts. Gonzalez’s legislation seeks to address those worries by barring licences for companies that have reduced their Illinois workforce by more than 25% since February 2020.
Support for the initiative comes from the Sports Betting Alliance, whose members include Bet365, BetMGM, DraftKings, Fanatics and FanDuel.
Illinois online casino floated previously
Last year, Governor JB Pritzker described online casino legalisation as “worth considering” while presenting a proposed state budget that included a $3 billion shortfall.
Illinois lawmakers have been introducing iCasino legislation since at least 2021, with supporters estimating the measure could generate as much as $800 million in annual revenue for the state.
During last summer’s National Council of Legislators from Gaming States conference, Illinois Attorney General Kwame Raoul said he expects the state to legalise online casinos “at some point” down the line.
Maine became the eighth US state to approve online casino gaming last month.
Several other states — including Indiana, New York and Virginia — have also seen lawmakers file iCasino bills. While Indiana’s proposal has already stalled, efforts in New York and Virginia remain active. An industry source told iGB that Maryland is also likely to revisit online casino legislation in the near future.
Industry insiders say momentum for iCasino expansion could increase as more states search for new revenue streams.
Illinois gambling taxes
Illinois’ proposed 25% tax on online casinos would align with the rate currently paid by lower-tier sportsbook operators in the state.
Sports betting originally launched with a 15% tax rate. However, in 2024 lawmakers approved a graduated structure tied to operator revenue, with rates ranging from 20% to as high as 40%. Legislators later added a per-bet levy as part of the state budget, prompting sportsbooks to implement various measures to offset the higher tax burden.
As the new year approached, Chicago Mayor Brandon Johnson allowed the city’s budget to take effect on 1 January without his signature. The budget included a 10.25% municipal tax on sports betting that Johnson had introduced last fall.
That local tax sparked pushback in Springfield. Representative Dan Didech, chair of the House Gaming Committee, introduced HB 4171, legislation aimed at stopping cities from imposing their own sports betting taxes.
“When sports betting was legalised in 2019, lawmakers never intended to give municipalities authority to set separate rules for the industry,” Didech said. “Chicago’s approach will harm consumers, push at-risk players toward illegal operators and cut into state revenue. The city should work with the state to develop responsible, well-informed policy.”
The Sports Betting Alliance has also filed a lawsuit against Chicago over the new tax measure.
