An Illinois lawmaker is restarting his pitch for iCasino legalisation.
Rep Edgar Gonzalez Jr reintroduced the Internet Gaming Act, HB 4797, this week in an effort to legalise online casinos in Illinois. Gonzalez introduced the same proposal last year, but it did not advance beyond its initial committee.
Gonzalez’s bill would allow the Illinois Gaming Board to licence online operators for up to three online casino skins. The state would tax online casino revenue at 25%. The board would be directed to issue emergency rules within 90 days of passage, with temporary licences available within 30 days using existing gambling regulations where possible.
Gonzalez also introduced HB 4802, which would legalise online poker in the state. Under his proposals, the state regulator could enter into agreements with other states for multi-jurisdictional internet gambling. Six states at present take part in the Multi-State Internet Gaming Agreement, which allows online poker play across state lines.
The National Association Against iGaming has opposed recent iCasino legislation across the country, raising concerns about the threat of brick-and-mortar casino revenue cannibalisation and resulting job losses. Gonzalez hopes to counter that with a provision that would prevent licensing of companies that have significantly cut their in-state workforce in recent years. The bill states that threshold as more than 25% since February 2020.
The Sports Betting Alliance supports the push to take casinos online in Illinois. The SBA represents Bet365, BetMGM, DraftKings, Fanatics and FanDuel.
Illinois online casino floated previously
Last year, Governor JB Pritzker said online casino legalisation was “worthy of consideration”. That comment came as he unveiled his proposed budget that included a $3 billion deficit.
Legislators have introduced online casino legislation since at least 2021 in Illinois. Proponents say it could net the state up to $800 million annually.
As last year’s National Council of Legislators from Gaming States summer conference, Illinois Attorney General Kwame Raoul projected that Illinois would legalise online casinos “at some point” in the future.
Maine became the eighth state to legalise online casinos last month.
Lawmakers in multiple states, including Indiana, New York and Virginia, have introduced bills to allow iCasinos. Indiana’s effort is already derailed, but the other two states are still possibilities. An industry source told iGB a Maryland effort will also likely be reintroduced soon.
Industry sources suggest online casino expansion could begin to see an uptick in legislative action as states look for new sources of revenue.
Illinois gambling taxes
The proposed 25% tax rate on iCasinos in Illinois would put it in line with what is paid by the lower tier of sportsbook operators in the state.
Initially, lawmakers passed sports betting with a 15% tax. In 2024, however, the legislature passed a tiered system based on operator revenue that started at 20% and scaled to 40%. Last year, lawmakers added a per-wager tax in the state budget. Sportsbooks then instituted various steps to mitigate the increased taxes.
Heading into the new year, Chicago Mayor Brandon Johnson did not sign the city’s budget, instead allowing it to go into effect 1 January. It included a 10.25% local tax on sports betting that Johnson had proposed in the fall.
That city tax created backlash at the state level, with Rep Dan Didech, chair of the House Gaming Committee, filing HB 4171, looking to prevent municipalities from creating their own sports betting taxes.
“When the legislature legalised sports betting in 2019, it was never our intent to allow local governments to create their own rules for this industry,” Didech said at the time. “Chicago’s proposal will hurt consumers, drive vulnerable people to predatory illegal markets and reduce state tax revenue. The city should work collaboratively with the state to ensure sound, informed policy decisions are made on this issue.”
The SBA also has sued the city over its new tax provision.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
Original article: https://igamingbusiness.com/gaming/online-casino/gonzalez-illinois-online-casino-bill-2026-reintroduction/
