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Illinois lawmakers have resumed efforts to legalize online casinos less than a month after Gov. JB Pritzker publicly endorsed the idea as a way to address the budget deficit. The identical bills in the Illinois House of Representatives and Senate come from familiar sources: Rep. Edgar González, Jr. and Sen. Cristina Castro.
Castro and González have been behind similar efforts in Illinois in each of the past two legislative sessions, albeit without much success. Illinois’ two-year sessions mean the effort has been ongoing since 2021.
The same obstacles that thwarted previous attempts remain in 2025. However, Illinois’ financial situation has changed, and the Governor’s support might mean this latest push makes it further through the legislative process.
HB 3080 and SB 1963 begin the rounds
Castro and González filed their bills on Thursday, bearing the same name as in previous years: the Internet Gaming Act.
HB 3080 is currently with the House’s Rules Committee while SB 1963 is pending assignment.
The proposal gives each gaming licensee in the state the opportunity to fill up to three “skins” (online casino brands) and assesses a 25% tax on adjusted revenue from iGaming. With those licenses, online casinos could offer Illinoisans online poker, online slots, online table games, and live-dealer games.
The skins could consist of licensees’ own products or license holders could contract them out to operational partners. The same system currently exists in Illinois for online sports wagering.
One interesting clause in the bills is a contingency for the renewal of licenses. Such renewals will be predicated upon staffing thresholds at licenses’ brick-and-mortar locations.
If workforce numbers fall by 25% or more between renewals, that job loss would bar the affected license from being renewed.
The bills earmark the tax revenue for the State Gaming Fund. Beyond covering the expenses of regulating gambling in Illinois, that fund provides money for education in the state.
While Pritzker mentioned iGaming legalization in January, he did not express sentiments other than being open to considering the expansion of gambling. The budget issue could be Castro’s and González’s biggest selling point.
Budget stress could counteract objections to online casino legalization
The context in which Pritzker mentioned iGaming was a $3 billion budget deficit Illinois is facing. Castro spoke to that issue with the Chicago Sun-Times, characterizing online casino revenue as a way to address that issue.
However, the gaming industry at large in Illinois might not be on-board with the expansion. Illinois is home to a regulated video lottery terminal market that allows businesses like bars, convenience stores, and restaurants to host slot-like machines and split the revenue with operating companies.
The companies operating those terminals are a strong lobbying force in Illinois and could throw their resources behind resistance to Castro’s and González’s bills. Their argument might be that legalizing iGaming will harm the businesses they contract with.
The labor force provision in the bill could be an attempt to pacify opposition from unions representing hospitality workers in the state concerned about job security for their members. After bills in 2023 and 2024 didn’t gain much momentum, the third try could be the charm for Castro and González.
