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The possibility of legalizing Illinois online casinos is back on the table as the 2025 legislative session begins, thanks to comments from the Governor.
Governor J.B. Pritzker called the issue “worthy of consideration” in a Chicago Sun-Times article. His office will present its yearly budget proposal next month, and the state faces a $3 billion budget deficit.
Illinois has the sixth-largest population in the US and was a top candidate to pass online casino legislation. However, recent years’ efforts have failed to gain significant momentum.
A “tool” for a “tough budget year”
Supporters of online casinos, or iGaming, in Illinois estimate the industry could generate up to $450 million in annual tax revenue. That is in addition to the billions it earns from other forms of legal gambling.
That number could grow to $800 million once the industry reaches maturity.
In the Sun-Times, Sen. Cristina Castro expressed the importance of that revenue.
In a tough budget year, you’re looking at ways to increase revenue. This is one tool for that. And it’s something that could be more palatable to constituents.
Castro, an Elgin Democrat, sponsored the 2023 Internet Gaming Act, a Senate bill that sought to legalize iGaming in the Land of Lincoln. Chicago Democratic Rep. Edgar Gonzalez Jr. introduced the same legislation in the House, but neither made it out of their respective committees.
The deficit adds extra incentive to legalize Illinois online casinos in 2025. Some lawmakers, such as Republican Rep. John Cabello, believe iGaming revenue will come out of other gambling streams.
Castro and others say it attracts a different market that is otherwise incentivized to gamble on illegal, unregulated sites. She believes the solution is to legalize and regulate iGaming and focus on shutting down black market sites.
iGaming revenue would outstrip expanding retail casino industry
The iGaming sector has undeniably impacted other legal markets with similar gambling industries, like Pennsylvania, Michigan and New Jersey, which generate upwards of $200 million in monthly revenue.
Illinois has 16 casinos, five of which have opened since 2023. Additionally, Hard Rock Casino opened in 2021 and opened its permanent facility in Rockford last August.
Even with the growth, Illinois casinos have struggled to produce consistent numbers, only surpassing $150 million in monthly revenue twice in the last year. November was one of those months ($152.9 million), and that came as northern Indiana casinos reported $77.6 million of their own revenue.
Chicagoland casinos still generated more than half the state’s November revenue, fueled primarily by Rivers Casino Des Plaines ($43.3 million).
Four more casinos surpassed $10 million for the month, three of which were in the Chicago area. Bally’s Chicago, the only casino within Chicago city limits, fell shy of that mark, reporting $9.7 million. Its permanent facility will not open until next year.
Hard Rock was the third-highest revenue producer among 16 Illinois casinos in November. The newest casino, Wind Creek, opened on November 11 and ranked fifth in the state despite the incomplete month.
Unions, VGT operators have kept iGaming at bay thus far
Illinois had its first casino open in 1991. Despite the mature industry and liberal political climate, efforts to legalize online casinos have not materialized beyond legislative bills stalling in House and Senate committees in 2023 and 2024.
Video gaming terminals (VGT) are the largest hurdle to overcome. VGTs operate similarly to slot machines and are legal at truck stops and licensed retail, veteran and fraternal establishments.
Illinois has more than 45,000 VGTs statewide, the most in the nation. In addition to creating revenue for local businesses, VGTs contributed $848 million in tax revenue in the Fiscal Year 2024. That’s more than five times the $158 million retail casinos brought the state and in the same ballpark as the lottery ($886 million) and what a mature iGaming industry could generate.
Labor unions with casino contracts have raised additional concerns. Keith Wetherell, executive director of the Illinois Licensed Beverage Association, said some businesses could see a 40% decline in revenue from legal online casinos.
