Illinois has constantly raised taxes on sports betting operators. Now, the state might be continuing the trend on its casinos’ table games.
The state is faced with a budget deficit that could potentially grow to $2.2 billion for fiscal year 2027. Consequently, Gov. J.B. Pritzker (D) has proposed a record $56 billion budget. As part of the budget, he is proposing tax hikes on several industries.
That includes hiking the tax rate on casino table games. The budget proposes scrapping the current progressive range of a 15% to 20% tax rate in favor of a rate that moves from 15% up to a whopping 50%. Proponents believe it would add an additional $120 million to government coffers each year.
Customers Could End Up Paying For Hike
The change would bring table game taxes in line with slot machines. Additional revenue from the increased levies would be earmarked toward the state Education Assistance Fund.
“Over the years, the state and units of local government have received lower revenues from casinos, creating gaps in funding or forcing shifts in resources from other causes,” the budget proposal notes.
A hike on table games revenue reaching 50% could potentially cause casinos to pass the taxes on to customers.
Brick-and-mortar casinos could alter games to increase the house edge, which are less favorable to gamblers. For example, triple-zero roulette greatly increases the house’s hold. It’s already becoming more common in Las Vegas, and could be the only option in Illinois.
Another option could be only hosting blackjack games with 6-to-5 payouts on a blackjack, rather than the traditional 3 to 2. Per-wager fees, seen in Oklahoma tribal casinos, could also be an option.
Beyond the tax increase, the budget would also merge the Illinois Gaming Board and the Illinois Racing Board. The boards would become the Department of Gaming Regulation and Enforcement. The new entity would be charged with overseeing all aspects of gaming in the state, including regulations, enforcement, and tax collection.
Recent Illinois Gaming Tax Increases
The rate hikes come as the state has made considerable news over raising the tax rate on sports betting. Last year, the state approved a 25-cent tax on wagers for an operator’s first 20 million bets, which rises to 50 cents per bet beyond that threshold.
State Rep. Daniel Didech (D) has now introduced a bill scrapping the per-wager tax after the state saw 28 million fewer bets after the tax went into effect in September.
The per-bet tax followed a tax increase in 2024 that instituted a progressive tax structure on operators up to 40%. Additionally, Chicago recently added a tax of 10.25% on the industry, and the city’s Financial Future Task Force has recommended a 50-cent per-wager tax.
The Sports Betting Alliance has sued the city to block the tax increase, and some legislators are pushing a bill to block the city from taxing the industry.
