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Earlier this month, Illinois Attorney General Kwame Raoul spoke about the likelihood that online casinos will come to the Prairie State, a move that could make Illinois the premier iGaming jurisdiction in the country.
Raoul offered his prediction during a meeting at the National Council of Legislators from Gaming States’ (NCLGS) convention, saying online casinos were the natural next step for Illinois’ gaming industry.
What Would Online Casinos Mean for Illinois?
Online casinos are a booming business, generating significantly more revenue for operators than sports betting. However, they’re only legal in seven states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Why so few? Competition with land-based casinos, generally speaking.
There’s a fear that launching online casinos in a state with brick-and-mortar (“retail”) casinos will reduce their revenue, impacting their bottom line. Nevertheless, lawmakers may be swayed by the substantial revenue online casinos could generate.
Illinois Could Lead Online Casino Revenue
Based on revenue and population figures from the seven states with legal online casinos, PlayUSA believes Illinois could be the biggest iGaming market in the country, generating more than $260 million per month, on average.
If Illinois lawmakers legalize online casinos, gamblers physically present within the state’s borders could create an account with an online casino operator, deposit money, and play casino-style games such as slots. In some cases, gaming companies will combine their sports betting and online casino apps; FanDuel and DraftKings are examples of operators with dual apps.
PlayUSA predicts that Illinois could be the largest online casino market in the country based on May revenue data from the seven states with iGaming:
| State | May 2025 online casino revenue | Population | Per-capita revenue |
|---|---|---|---|
| Illinois (projected) | $260,478,288 | 12,812,508 | $20.33 |
| Pennsylvania | $227,700,000 | 13,078,751 | $17.41 |
| Michigan | $251,500,000 | 10,140,459 | $24.80 |
| New Jersey | $246,800,000 | 9,500,851 | $25.98 |
| Connecticut | $52,100,000 | 3,675,069 | $14.18 |
| West Virginia | $28,600,000 | 1,769,979 | $16.16 |
| Delaware | $8,400,000 | 1,051,917 | $7.99 |
| Rhode Island | $4,800,000 | 1,112,308 | $4.32 |
| Total | $819,900,000 | 40,329,334 | $20.33 |
Typically, states with larger populations generate more revenue. However, that’s not always true for online casinos. Pennsylvania has a significantly larger population than New Jersey and Michigan, but lags behind them in iGaming revenue. Given this trend, Illinois could potentially generate the highest online casino revenue of any state.
How Much Tax Revenue Could Illinois Earn from Online Casinos?
It depends on Illinois’ tax rate. Using the average tax rate from states with online casinos, PlayUSA projects the Prairie State could generate nearly $100 million per month, based on May 2025 revenue figures:
| State | May online casino revenue | Tax rate | Notes |
|---|---|---|---|
| New Jersey | $246,800,000 | 15%* | Will likely increase to 19.75% |
| Michigan | $251,500,000 | 24% | Average of the state's five progressive tax rates |
| Pennsylvania | $227,700,000 | 54% | Slots tax rate |
| Connecticut | $52,100,000 | 18% | Tax rate will increase to 20% next year |
| West Virginia | $28,600,000 | 15% | n/a |
| Delaware | $8,400,000 | 57% | n/a |
| Rhode Island | $4,800,000 | 61% | Slots tax rate |
| Average | $117,128,571 | 38% | n/a |
| Illinois (projected) | $260,478,287.64 | $99,415,879.78 | n/a |
The exact tax revenue Illinois could generate will vary depending on factors such as whether online slots are taxed differently from table games and poker, and the tax rate legislators set.
If the state’s history with increasing sports betting taxes is any indication (lawmakers voted last year to raise the tax rate from 15% to a 40% progressive tax rate, along with per-bet fees), the Illinois online casino tax rate may debut at or above the national average of 38%.
How Likely Is It that Illinois Will Get Online Casinos?
At this point, it’s hard to predict. However, given how eager Illinois lawmakers have been to generate tax revenue from gaming, it’s likely they will support online casinos due to the significant revenue opportunity. Additionally, the state’s population and thriving online sports betting market make it an attractive destination for iGaming operators seeking new revenue streams.
