Illinois Gov. Proposes Another Gaming Tax Hike, This Time for Casinos

Illinois recently introduced several tax hikes to its sports betting industry, and now, local casino operators could feel the same burden.

Gov. JB Pritzker (D) is hoping to generate more funding for the state by increasing tax payments for (live-dealer) table games and electronic gambling machines located in state-licensed casinos. The proposals were included in his $57 billion budget proposal for FY2027 that aims to raise nearly $600 million through a series of tax hikes across the state.

Leading U.S. sportsbooks strongly opposed Illinois’ past tax increases. Most online sportsbooks operating inside state lines instituted measures such as bet minimums and surcharges to account for the loss in tax revenue.

Illinois looking for more casino tax revenue

Pritzker was also behind the increase in Illinois’ sports betting tax standard, and just like his new proposals, those were presented in his annual fiscal budget proposal. 

This time around, the Illinois Gov. is proposing seismic changes to the state’s casino market. 

Under the current structure, casinos are responsible for paying 15 percent on the first $25 million of their adjusted gross revenue (AGR) on table games, and 20 percent on all additional revenue.

The proposal would match the table game tax standard to that of slot machines, which range from 15-50 percent. The exact breakdown is as follows.

• Up to $25 million: 15%
• $25 million – $50 million: 22.5%
• $50 million – $75 million: 27.5%
• $75 million – $100 million: 32.5%
• $100 million – $150 million: 37.5%
• $150 million – $200 million: 45%
• $200 million or more: 50%

If approved, the new tax structure would be applied to 15 of the state’s 16 licensed casinos. Chicago casino operators exist under a separate framework that was previously established.

Proposed and recent changed

Using the latest revenue reports, three casinos would be expected to increase their tax payments from the 20 percent maximum. An estimated $589 million in new revenue would be generated from statewide tax reforms.

The $120 million received from table games would be allocated to the Education Assistance Fund, which supports 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,” Pritzek wrote in his budget proposal.

Rivers Casino Des Plaines and its $107.4 million in AGR would slot into the 37.5 percent portion of the outline. 

Bally’s Chicago, which collected more than $25 million in AGR at its temporary location, would have to pay 22.5 percent and would be expected to pay even more once it moves to its permanent facility.

Wind Creek Casino in East Hazel Crest would also fall into the 22.5 percent category.

Illinois’ gaming industry market one of the most heavily-taxed jurisdictions in the country.

In 2024, the state moved from maintaining a flat 15 percent tax on sports betting to a sliding 20-40 percent scale. Last summer, the state also instituted a per-bet charge of $.25-.50, depending on how many wagers a sportsbook processed in a given year.

Chicago sportsbooks also have to pay an additional 10.25 percent local tax.