Lawmakers in Illinois will once again consider legalizing online casinos. Rep. Edgar González, Jr. (D) recently introduced a new bill that would bring the platforms to the Land of Lincoln.
HB 4797 would legalize online gaming and poker in the state of almost 13 million people. González also put forward a similar bill in 2025, but that effort ultimately failed.
The Internet Gaming Act would allow licensees to partner with up to three online operators. The proposal comes as the state is projected to face as much as a $2.2 billion budget deficit through 2027.
Legislation Sets A 25% Tax Rate
González’s bill would set a 25% tax rate on the industry. Additionally, operators would face a $250,000 fee for a license with a $100,000 renewal fee. The bill prohibits anyone under the age of 21 from gambling online, and includes language forcing operators to prioritize responsible gambling.
The bill also includes an interesting mechanism meant to address perceived cannibalization from land-based casinos. The Illinois Gaming Control Board would be barred from licensing a casino that has reduced its workforce by 25% or more since Feb. 28, 2020.
While some states have expressed concerns about cannibalization, a 2024 study from iDEA Growth (iDevelopment and Economic Association) casts doubt on that theory. The group is the leading trade association for online gaming in the U.S.
Currently, Pennsylvania, Michigan, New Jersey, Nevada, Delaware, West Virginia, and Connecticut all offer legal online gambling (Nevada allows online poker only). Maine joined that group in January.
On the online poker front, Illinois joining the Multi-State Internet Gaming Agreement would give the compact a significant boost.
Illinois Gaming Developments
Illinois has seen some interesting developments on the gaming front in recent years. That has included a recent delay in building a permanent Bally’s casino in Chicago. New legislation would allow the city’s temporary casino to remain open through the second half of 2027 as construction on the permanent facility continues.
The project has seen other delays over the last few years. A waste-hauling services company’s alleged links to organized crime delayed construction in May. The location of the hotel tower also had to be moved in January 2024 to avoid damaging critical water lines under the site.
The state also made news in 2025 by hiking taxes on its state’s sports betting operators. Legislators levied a 25-cent tax on every wager placed with a regulated operator for the first 20 million bets, which doubled beyond that threshold. Wagers dipped after the tax increase was enacted.
