Since 2021, the number of U.S. states that offer legal online casino gaming has grown by one. Rhode Island, which launched a monopoly market in 2024, added its name to the roster of online casino friendly states thanks to a bill signed by Governor Dan McKee. Now, that legal online casino roster stands tall at seven U.S. states.
While it isn’t surprising that online casino legislation takes time, the Rhode Island law (centered around Bally's Casino) is the first success in a long line of close calls. However, with Illinois’s 2026 budget being finalized in May, many pundits and insiders are looking to the Prairie State as a long-awaited win.
With the explosion of sweepstakes casinos across the United States, it is clear that casino players are looking for new opportunities to play their favorite casino games. Could Illinois be the next state to join the roster of legal online casino states offering online slots and blackjack to its residents? Let’s take a look at how Illinois became online casino gaming’s biggest potential suitor.
How Did Illinois Get Here?
After assuming office in January of 2019, Governor J.B. Pritzker made it clear that legal Illinois sports betting was going to happen. On June 28, 2019, Governor Pritzker signed the Sports Wagering Act into law, which would bring in a 15% gross revenue tax on all licensed sports betting operations to the state.
According to the American Gaming Association, in 2024 Illinois’ gaming industry brought in more than $2.08 billion in tax revenue, an increase of 15% from the previous year and the eighth most across all states with legal sports betting.
Notably, of the seven states ahead of Illinois for tax revenue generated in 2024, three have brought real money online casinos to their residents. Even further, each of those three states had double the revenue of Illinois and two saw double-digit growth year over year. There’s money in online casinos and that’s exactly the reason why Governor Pritzker may take on the challenge of bringing online casino gaming to Illinois.
“A Tough Budget Year”
Online casino experts were anxiously awaiting Governor Pritzker’s 2025 budget, in the hopes that there would be some movement on the iGaming front. Two bills were introduced on February 7th, 2025, by Senator Christina Castro and Representative Edgar Gonzalez with the hopes of creating the Internet Gaming Act. Both of these bills were put forth before, but failed to move past Committee discussions.
This time around, things appear to be more in Senator Castro and Representative Gonzalez’s favor. The new proposed legislation included an increased tax rate, bumping Illinois’ current 15% rate to 25%. Casino operators would also be allowed to operate multiple brands in a three-skin approach. But the secret to success for these legislations lives within the Governor's budget.
Illinois is staring down the barrel of a $3.2 billion budget shortfall for the fiscal year 2026, with few options to source revenue from other means. The increased tax rate found in these bills, in conjecture with the increased revenue seen within other states like New Jersey, Michigan and Pennsylvania, legal online casino gaming could be the savior of Illinois’ financial woes.
“In a tough budget year, you’re looking at ways to increase revenue. This is one tool for that,” said Sen. Castro. “And it’s something that could be more palatable to constituents.” When speaking to the Chicago Sun-Times, Governor Pritzker added that online casino legislation "worthy of consideration."
What’s Next for Legal Online Casinos in Illinois?
While Governor Pritzker’s $55.2 billion budget doesn’t explicitly mention legalized online casino gaming, it does include a new tax rate on casino tables games. Bucking the tax structure implemented in the 2029 gaming expansion, casino table games will be taxed at the same graduated rates applied to slot machines.
This shift in tax rates does have Democratic proponents on online casino gambling excited, as this may signal that Pritzker’s budget team is looking at casino gaming revenue more closely. Hopefully, with all eyes on the 2026 fiscal headwinds, Illinois will open up to the concept of online casino gaming for its residents.
But there is still work to be done. The future of both SB 1963 and HB 3080 still hang in the balance. With other states like Maryland and neighboring Indiana poised to make the legal online casino jump in the next two years (or sooner) Illinois has the chance to strike while the iron is hot. While some legislators see these two bills as gambles, there are seven other U.S. states that are proof that sometimes it pays to go all-in on online casino gaming.
