After imposing multiple high-profile tax changes for sports betting operators in Illinois, Gov. JB Pritzker is aiming to generate additional revenue for the Land of Lincoln through casino gaming.
Pritzker has introduced his $57bn state budget for FY2027, which aims to generate $589m in revenue through tax increases throughout Illinois. The tax revenue includes $120m of net-new revenue derived from table games and electronic gambling device operations in the state.
A much higher tax ceiling for casino table games
Pritzker aims to raise that portion of the money by realigning the tax treatment for 15 of the 16 casinos operating in Illinois. Under Pritzker’s budget proposal, the tax rate for table games would range between 15% to 50%, compared to a current range of 15% to 20%. The realignment excludes Chicago’s casino, which is subject to its own tax structure.
Currently, table game operators are taxed at 15% for adjusted gross revenue up to $25m. If an operator surpasses the $25m threshold, the tax rate for table games jumps to 20%. But Pritzker’s FY2027 budget aims for table games to abide by the same tax structure as slots and all other gambling games in Illinois. The state’s current tax structure for slots:
| Adjusted Gross Revenue | Tax Rate |
| Up to $25m | 15% |
| $25m – $50m | 22.5% |
| $50m – $75m | 27.5% |
| $75m – $100m | 32.5% |
| $100m – $150m | 37.5% |
| $150m – $200m | 45% |
| $200m or more | 50% |
The budget proposes allocating the additional revenue from the new tax structure toward the Education Assistance Fund, which offers grants and financial aid programs.
“Over the years, the state and units of local government have received lower revenues from casinos, creating gaps in funding or forcing shifts in resources from other causes,” reads Pritzker’s budget proposal.
Pritzker’s budget also makes regulatory changes in Illinois
Pritzker’s FY2027 budget proposal also aims to merge state regulatory agencies.
The budget proposes merging the Illinois Gaming Board and the Illinois Racing Board into a singular entity, the Department of Gaming Regulation and Enforcement. The department would “assume all the powers and responsibilities” of the state’s two active regulators.
The Department of Gaming Regulation would be responsible for collecting taxes in the state derived from sports betting, casino gambling, video gaming, horse racing and off-track wagering. Pritzker proposes an operating structure for the department of an executive director and two assistant directors. If Pritzker’s budget proposal is approved, the merger will go into effect on July 1, the first official day of Illinois’ new fiscal year.
Recent gambling changes in Illinois
Pritzker is looking to casino gaming to generate additional tax revenue for Illinois after introducing a sliding tax scale in 2024 for licensed sports betting operators in the state.
That year, Pritzker approved a budget that taxes operators at a 20% rate on the first $30m in revenue generated through sports betting. The rate increases to 25% for revenue ranging between $30m and $50m, to 30% tax rate for revenue between $50m and $100m, and 35% for revenue that ranges from $100m to $200m. The budget’s highest tax rate is 40% on any sports betting revenue in excess of $200m.
After that came the notorious per-wager tax in Illinois, which charges online sportsbooks 25 cents per wager placed with their platforms, rising to 50 cents after the first 20 million wagers that are accepted in a year.
In Chicago, sports betting operators face an additional 10.25% local tax as part of Mayor Brandon Johnson’s budget.
Illinois state lawmakers have filed separate pieces of legislation aimed at repealing the per-wager tax and blocking Chicago from continuing to implement its city sports betting tax.
