Illinois could be headed toward another gaming tax increase in the near future, as Governor J.B. Pritzker’s proposed $57 billion budget from last week includes a provision that would increase table game tax rates for the state’s non-Chicago casinos.
Currently, Illinois casinos outside of Chicago pay different tax rates for slots and tables. Slot taxes are gradual, starting at 15% of adjusted gross revenue up to the first $25 million and incrementally increasing to a maximum of 50% of AGR above $200 million.
Table rates are also gradual, but only from 15% up to $25 million and 20% for anything over that mark. Chicago, which features Bally’s temporary casino and eventually will host its permanent one, has its own casino tax framework.
Pritzker’s budget proposal, if approved, would align the table game tax framework with that of slots, which is as follows:
- 15% of AGR up to and including $25 million
- 22.5% of AGR of $25 million to $50 million
- 27.5% of AGR of $50 million to $75 million
- 32.5% of AGR of $75 million to $100 million
- 37.5% of AGR of $100 million to $150 million
- 45% of AGR of $150 million to $200 million
- 50% of AGR in excess of $200 million
Rivers would be hit hardest by new tax
The state estimates that the new tax would generate $120 million in additional annual revenue. In terms of impact, only three casinos would even qualify for the higher table tax threshold based on 2025 AGR results:
- Rivers Casino in Des Plaines
- Wind Creek Casino in East Hazel Crest
- Grand Victoria Casino in Elgin
Rivers owner Neil Bluhm and Pritzker share similarities as billionaires aligned with Democratic Party fundraising, but their interests appear at odds in this case.
Rivers would see a massive spike from 20% to 45% based on its state-leading table AGR of $183.3 million last year, while Wind Creek and Grand Victoria would see a modest increase to 22.5%. Bally’s temporary Chicago casino would also qualify for a higher rate but falls under a separate framework. All other licensees would stay at the original 15% mark.
2025 was the best year ever for Illinois casinos, which posted total AGR of $1.9 billion, up 15% from 2024. Rivers was easily the top performer overall, as its AGR of $503 million represented a quarter of the state’s market share. That performance would be impacted by the new budget, however, as its 2025 table tax bill of $36.6 million would be more than doubled to $82.3 million under the 45% rate.
Illinois gaming tax increases becoming common
Gaming tax increases have been a hot topic in Illinois for multiple years, though online sports betting has largely borne the brunt. In 2024, Pritzker pushed through a big increase from a 15% flat rate for OSB to a graduated scale that ranges from 20% to 40% based on AGR.
Then last year, the state enacted an additional per-wager tax of $0.25 for the first 20 million wagers and $0.50 for every wager thereafter. Both the graduated scale and the per-bet fee are the only such frameworks in the US among legal sports betting states.
Both increases caused consternation for the industry, and a bill (HB 4171) has been introduced this session by Rep Daniel Didech to repeal the per-wager tax. However, lawmakers can claim the hike as a success, as it generated $60 million through the first six months of fiscal year 2026, above the estimated $40 million.
Plenty of Chicago gaming news
While the new table tax would not apply to Chicago, there is no shortage of gambling intrigue in Illinois’ largest city.
Bally’s, which won the city’s sole casino licence, is working toward a September deadline to open its $1.8 billion permanent facility. But growing uncertainty about the attainability of that deadline caused Rep Kam Buckner to introduce HB 4437 this year, which would extend Bally’s deadline by up to 12 months. The bill is in committee, but if it does not pass, Bally’s might be forced to close its temporary casino until the permanent venue is complete.
Additionally, the city went somewhat rogue in its own budget process this year by including both a city-level sports betting tax and legalisation of VGTs, which would significantly affect the performance outlook for both sportsbooks and Bally’s.
On the OSB front, the House Gaming Committee unanimously passed HB 4171 earlier this month seeking to repeal the city-level tax. Leading operators from the Sports Betting Alliance, a sportsbook-backed lobbying arm, have sued the city and threatened to leave the state, though none have yet.
The VGT front is more complicated, as city officials continue to grapple with Mayor Brandon Johnson over their implementation. But if legalised, the impact could be significant. In 2025, casinos generated about $430 million in combined state and local taxes, compared to $1.1 billion in total taxes from VGTs.
Chicago’s 2026 budget set aside $6.8 million in VGT licensing revenue, which assumes more than 75% of the city’s existing liquor licensees would apply for VGTs. However, the future of that provision is uncertain, per local reports, with negotiations still continuing. Bally’s has warned that legalising VGTs would jeopardise a $4 million annual payment under the host community agreement.
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Original article: https://igamingbusiness.com/finance/tax/illinois-table-game-taxes/
