Illinois Gov. JB Pritzker’s $57 billion FY2027 budget would shift table game taxes from a 15%–20% structure to a progressive scale reaching 50%, a move projected to generate $120 million and increase obligations for high-AGR properties.
The proposal would align table game taxation with the state’s existing slot revenue brackets. Under current law, table games are taxed at 15% on adjusted gross revenue (AGR) up to $25 million and 20% on AGR above that level. The revised structure would apply the following rates:
- 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%
The change would apply to 15 of the state’s 16 casinos. Chicago’s casino operates under a separate tax framework established under prior legislation.
Based on current AGR levels, three properties would move above the existing 20% ceiling. Rivers Casino Des Plaines, with $107.4 million in table games AGR and nearly half of statewide table revenue, would fall into the 37.5% bracket. Bally’s Chicago, which has surpassed $25 million in AGR, would be subject to the 22.5% rate, although it would be excluded for being based in Chicago. Wind Creek Casino would also remit taxes at 22.5% based on current revenue.
Two additional venues — The Temporary in Waukegan and Grand Victoria Casino — could reach the 22.5% bracket before the end of the fiscal year.
In his budget document, Pritzker wrote: “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.”
The administration projects $589 million in total new revenue from tax changes statewide. The additional $120 million from table games would be directed to the Education Assistance Fund, which supports grants and financial aid programs.
The table game proposal follows recent adjustments to sports betting taxation. In 2024, Illinois moved from a flat 15% tax on sports betting AGR to a progressive scale ranging from 20% to 40%. Operators pay 20% on the first $30 million in revenue, 25% between $30 million and $50 million, 30% between $50 million and $100 million, 35% between $100 million and $200 million, and 40% on revenue exceeding $200 million.
Lawmakers also approved a per-wager surcharge of $0.25 per online bet, increasing to $0.50 after the first 20 million wagers annually. The surcharge generated $62.2 million in the first six months of FY2026, compared with an estimate of $40 million for the full year.
Sportsbooks operating in Chicago face an additional 10.25% local tax under Mayor Brandon Johnson’s budget. Members of the General Assembly have filed legislation seeking the repeal of the per-wager surcharge and legislation intended to block the city from continuing its local sports betting tax.
The FY2027 budget also calls for merging the Illinois Gaming Board and the Illinois Racing Board into a Department of Gaming Regulation and Enforcement. The new agency would “assume all the powers and responsibilities” of both bodies and oversee tax collection for sports betting, casino gaming, video gaming, horse racing, and off-track wagering.
The proposed department would be led by an executive director and two assistant directors. If approved, the consolidation would take effect July 1, the first day of the new fiscal year.
A bill introduced by state Rep. Yolanda Morris would create an Illinois gaming oversight officer within the Gaming Board. The position would make recommendations for policy and rule changes, collect regulatory data, assist with reports, and coordinate efforts among state agencies involved in regulating and taxing gaming and exempted or quasi-gaming.
The bill also includes language amending the Video Gaming Act to address licensing standards tied to gaming devices that comply with the Criminal Code of 2012. Chicago legalized video gaming terminals in its 2026 city budget to address a $1.1 billion shortfall.
Original article: https://www.yogonet.com/international/news/2026/02/24/117741-illinois-fy2027-budget-seeks-to-lift-casino-table-game-tax-ceiling-to-50-
