Illinois Lawmakers Push Online Casino Legislation

Illinois Lawmakers Push to Legalize Online Casinos

By Jerry Smith Staff Writer Updated: 02/19/2025

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Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.

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Online Casino Legislation

Proposal for iGaming in the State

Senator Cristina Castro and Representative Edgar Gonzalez filed Senate Bill 1963 and House Bill 3080, looking to establish the Internet Gaming Act. This comes after previous attempts failed in the 2023 – 2024 session, but they hope to secure approval with the amended proposal.

The proposals introduce significant changes, including a tax increase on adjusted gross revenue from 15% to 25%. Illinois is already ranked as the second-largest sports betting market in the US and boasts the nation’s most extensive network of video gaming terminals (VGTs).

The proposed legislation shows clear guidelines for regulating and operating online casinos in Illinois. Operators would need to pay a licensing fee of $250,000 and would then be allowed to offer up to three individually branded internet gaming platforms (skins). This is more flexible than the sport’s betting framework, which limits licenses to only a single brand.

The two lawmakers also carried over language into this year’s bills that the Illinois Gaming Board

may not issue an Internet gaming license to an owners’ licensee or an organization licensee that has reduced the size of its workforce by 25% or more since Feb. 28, 2020.

The revenue generated from online gambling would be allocated to the State Gaming Fund, potentially bringing in substantial financial benefits for Illinois. Some estimates suggest tax revenue from the sector could reach up to $800 million annually.

Addressing Concerns

Those opposed to online casino legalization, in particular VGT stakeholders, are worried that digital gambling may divert revenue away from traditional gaming venues, which could potentially impact employment in the sector. At the same time, proponents argue that online casinos could supplement state revenues without significantly harming existing gambling businesses.

Regarding inclusivity and diversity concerns, the bills state that licensed operators must submit an annual report showing their efforts to improve supplier diversity. Operators would also be required to hold workshops and job fairs that will promote diversity and inclusion within the industry.

The new online casino bills aren’t the only gaming legislation being considered. State Sen. Lakesia Collins’ SB 1224 would legalize all DFS contests, including peer-to-peer and against-the-house contests.