An Illinois legislator who has pushed for legal online casino gaming in the past has introduced his latest attempt to force the issue in the state House.
Rep. Edgar Gonzalez’s House Bill 4797 would create the state Internet Gaming Act to allow the Illinois Gaming Board (IGB) to license iGaming operators to offer three individually branded online casino skins. Online casino gaming would be available to state residents aged 21 and older, and operators would be taxed at 25% of gross gaming revenue.
Gonzalez filed the bill on Feb. 2 after his last effort in 2025, which had identical market parameters, failed to advance beyond the committee stage to reach a full House vote. A Senate companion bill last year didn’t get a committee hearing.
Sponsor attempts to ease cannibalization concerns
Illinois already has a thriving (albeit heavily taxed) online sports betting market. Gonzalez’s bill would add regulated online slots, table games, live dealer casino games and poker to the options.
In several years past, the idea of legalizing iGaming has met pushback from some corners, including from in-state casino operators. PENN Entertainment, operator of two Hollywood Casino locations and Argosy Casino Alton in the state, testified in opposition to last year’s bill.
In an attempt to assuage concerns over cannibalization of land-based casino gaming, Gonzalez has carried over language into HB 4797 that would block any company that has cut its Illinois workforce significantly in the last few years from being able to obtain an online casino license.
“The Board may not issue an Internet gaming license to an owner’s licensee or organization licensee that has reduced the size of its workforce by 25% or more since February 28, 2020,” states the text. “The Board may not renew the Internet gaming license of any owner’s licensee or organization licensee that has reduced the size of its workforce by 25% since the date its last Internet gaming license was issued or renewed.”
While casinos and other groups have opposed the idea, Illinois Attorney General Kwame Raoul said at the National Council of Legislators from Gaming States (NCLGS) Summer Meeting last July that he expects online casino gaming to be legalized at some point in the state.
Multi-jurisdictional iGaming possible
Other specifics of the bill include that operators would pay $250,000 for an initial license, with a $100,000 renewal fee, and would be required to establish numerous responsible gambling controls such as mechanisms for temporary and permanent self-exclusion and wagering and deposit limits. Meanwhile, the IGB would be able to enter into agreements with other jurisdictions for multi-jurisdictional internet gaming including poker, as long as that falls within the bounds of state and federal laws.
Incidentally, Gonzalez also filed a bill this week that would legalize online poker in Illinois.
While the bill notes that credit cards would be an permissable deposit method “to the extent allowed by federal law,” that could change down the line if the bill gains momentum this year. The IGB implemented a ban on credit card usage for online sports betting last year, and lawmakers proposed outlawing their use for gambling altogether.
Sorry, Chicago, but no local taxes allowed
Another provision of Gonzalez’s bill would ban local governments from imposing their own separate online casino taxes.
“This privilege tax is the exclusive tax in relation to Internet gaming,” states the text. “No local government of this State, including home rule municipalities, may impose or levy taxes on adjusted gross gaming revenue.” A small slice (5%) of the revenue from the statewide tax would be shared among municipalities and counties, while the remaining 95% would go into the state general fund.
Gaming tax has been a thorny issue in Illinois.
In the last 18 months or so, Illinois has moved from a 15% flat tax rate on online sports betting to a sliding scale that goes up to 40%, and also introduced its notorious per-wager charge on every single bet online sportsbooks take. Meanwhile, Chicago Mayor Brandon Johnson and the city budget last year included a proposal to implement a 10.25% tax on all wagers placed by people within the city limits.
State legislators filed a bill to try to block the city from doing so, and major sportsbooks FanDuel, DraftKings, BetMGM, Fanatics and bet365 sued the city in relation to the plan, claiming that Chicago does not have the legal authority to require a license for revenue or tax groups based on income, earnings or occupations without legislative permission.
