Illinois lawmakers table bills to legalize online casino

Two politicians in Illinois have filed proposals in both the Senate and the House to legalize igaming.

Senator Cristina Castro is behind Senate Bill 1963, while Representative Edgar Gonzalez has introduced House Bill 3080, both of which were filed on Thursday, February 6 and would create the Internet Gaming Act.

The bills propose that a casino or race track would be permitted no more than three branded skins, while each license would cost $250,000, along with a renewal fee of $100,000. 

If it became law that would be considerably less than the $10m upfront fee required to secure an online sports betting license in Illinois.

As for the proposed igaming tax, operators would pay 25% on gross gaming revenue (GGR), with Legal Sports Report estimating it could garner as much as $800m in tax revenue.

For operators looking to renew licenses, they would have to ensure that the workforce was not reduced by more than 25% since the date the original license was issued. 

Licensees would be required to signpost problem gambling treatment services, including temporary and permanent self-exclusion tools. 

They would also need to highlight responsible gambling measures, such as self-imposed wagering and deposit limits, offered on a daily, weekly and monthly basis.

The two bills come ahead of Illinois Governor JB Pritzker unveiling his proposed budget later this month. In January, Governor Pritzker said that the prospect of a legalized igaming market was “worthy of consideration.” 

Amid speculation that Governor Pritzker’s proposal could include a $3bn budget deficit, Senator Castro told the Chicago Sun-Times: “In a tough budget year, you’re looking at ways to increase revenue.  

“This is one tool for that, and it’s something that could be more palatable to constituents.” 

Govenor Pritzker has overseen significant change within Illinois’s gambling industry in the past, having previously signed off on legalized sports betting in March 2020 just over a year into his tenure. 

Last July, Illinois controversially increased its tax rate on sports betting from a flat rate of 15% to a graduated system of 20% to 40%, whereby the highest-earning operators pay the top rate.

And yet, igaming has remained off the table until now, though it is unclear if these bills will progress any further than previous attempts. 

Castro has submitted two similar pieces of legislation, in 2021 and 2023, respectively, but to no avail, while Gonzalez also filed a bill in 2023 that did not reach the House Gaming Committee until spring 2024.

Illinois, which is a state that has a two-year legislative session, is not the only jurisdiction to push for legalized igaming lately; a bill in Indiana passing through its first committee to the House floor. 

Maryland state delegate Vanessa Atterbeary filed a new bill to bring igaming to the Old Line State, which has since been assigned to the Ways and Means Committee. 

Meanwhile, legislators in New York, New Hampshire, and Massachusetts have also attempted to legalize igaming in early 2025.