The state of Illinois is looking to pass online casino legislation to accompany its 16 state-licensed casinos. Illinois lawmakers have proposed two new bills that aim to legalize online casino gambling in the state.
SB 1963 was filed last week in the Senate, and HB 3080 was filed in the House. This is the second consecutive session in which two Illinois lawmakers have sought iGaming legalization. While both bills failed in the last legislative session, the new bills proposed a 25% tax increase on adjusted gross revenue, whereas the previous bills only proposed a 15% tax.
Illinois online gambling options have made significant strides in the industry and were recently ranked as the second-largest sports betting market in the United States. The state also hosts 48,700 video gaming terminals (VGT) that generate substantial revenue. In 2024, the VGTs generated $884.2 million in tax revenue for the state, while casinos generated $345.2 million, and sportsbooks generated $244.2 million.
If passed, the new online casino legislation would require online operators to pay a $250k licensing fee. Once a license is obtained, operators can offer three branded internet gaming platforms. Online sportsbooks can currently only offer one brand or skin.
Why Online Casinos In Illinois Is A Good Idea
Online casino gaming, or iGaming, would be a great addition to the already existing online sportsbooks. While critics fear that online casino games will likely hurt the video gaming terminal industry, revenue could far surpass the VGT breadwinner in the future.
Currently, no laws are preventing IL players from accessing already-in-place online sites that accept players from all 50 states.
Other States With Online Casinos
Despite the 30+ states that have passed online sports betting legislation, online casinos are not as prevalent. Today, only six states have licensed domestic casinos to operate online: New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia. Other states have proposed online casino legislation, but only time will tell if they join the exclusive list.
Despite the lack of state legislation to allow online gambling sites to offer casino games, legal online casinos do exist and are exclusively provided by offshore brands. Online gambling sites located outside of the United States have been accepting US players for years, operate legally from their jurisdiction, and adhere to current US federal gambling laws.