Illinois looking to legalise online casinos

February 12, 2025

Illinois looking to legalise online casinos

Illinois lawmakers have recently filed two companion bills to bring online casinos to the state via the Internet Gaming Act.

Bills SB 1963 and HB 3080, introduced by Sen. Cristina Castro and Rep. Edgar Gonzalez, would pave the way for a new era of legalised online casinos. The bills propose granting Illinois Gaming Control Board the regulatory control over online gaming operations.

The Internet Gaming Act aims to bring legal, regulated online gambling to Illinois. The hope is that it will generate new revenue for the state while providing a secure and fair environment for players.

Operators seeking to enter the Illinois market will need to pay a licensing fee of $250,000. They will be allowed to offer up to three ‘skins,’ or branded versions of their online platforms.

With major operators like Caesars and BetRivers owner Rush Street Interactive already having a strong presence in Illinois, the legislation opens doors for these companies to expand their operations online.

Taxations and licence renewals

Under the proposed legislation, online casinos will be taxed at 25 percent of their adjusted gross revenue. Per the proposed bills, all tax revenue will be deposited into the State Gaming Fund. The proposed tax rate is in line with other states that have already legalised online gambling.

To mitigate some concerns from the retail industry, a provision within the bill prevents the Illinois Gaming Control Board from awarding or renewing an iGaming licence to companies that have reduced their workforce by 25 percent or more. This is applicable for companies who have slashed 25 percent or more staff since February 28, 2020, or since first receiving a licence. The provision is a direct response to concerns that online gaming could reduce foot traffic at physical casinos, leading to potential job losses.

The companion bills, which would be effective immediately on being signed into law, have been sent to respective committees in the Senate and House.

Diversity, equity, and inclusion

In an effort to promote diversity and inclusion, the bills also introduce measures requiring operators to file an annual report on their diversity, equity, and inclusion (DEI) efforts. As per this, licenced online gaming operators will be required to submit annual reports detailing spending for minority-owned, veteran-owned, and women-owned businesses. These reports will also cover goals for improving diversity in the supplier chain.

In addition to reporting, operators will be mandated to hold annual public workshops and job fairs. This is intended to help remove barriers to diversity and foster a more inclusive gaming environment. Moreover, the act would also allow multi-jurisdictional online gaming.

To further encourage innovation and speed up the rollout of online casinos, the Illinois Gaming Control Board will offer fast-track applications for iGaming suppliers who are already licenced to offer sports betting in the state.

Robust online sports betting market

Illinois has a robust online sports betting market, with the industry having achieved a new milestone in September, recording its highest-ever monthly revenue of $136.4 million. Although the total betting handle of $1.31 billion was substantial, it narrowly missed the state record of $1.38 billion set in November 2023.

The state has 10 online sportsbooks, with the latest bet365’s licence approval late in 2024. After New York, New Jersey and Nevada, Illinois is the fourth state to generate $40 billion in all-time sports wagering handle.

Apart from the new online casino bills, Illinois lawmakers are also considering the legalisation of Daily Fantasy Sports (DFS). Senate Bill 1224 would create a framework to regulate both peer-to-peer and against-the-house DFS contests. This legislation would separate DFS from sports betting and impose a tax rate of between 10 percent and 15 percent of adjusted gross fantasy contests receipts.