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Despite an explosion of legal sports betting, we’ve seen a much more subdued response to online casinos. As it stands, only nine states have passed laws to allow for it.
For what it’s worth, those states have seen big success. New Jersey is a leader, but newcomers like Michigan have even found a good footing in iGaming, as it’s often called.
But could Illinois betting become state No. 10 to allow it? There’s a push from lawmakers to do just that. Keep reading and we’ll tell you about a brand-new casino bill that’s floating around the state.
New House Bill Would Legalize Online Casinos
Meet HB4797 — a brand new House bill that would legalize online casinos across the state of Illinois. The bill’s sponsor is Rep. Edgar González Jr., who has tried this before (more on that soon).
Gonzalez’s proposal is for online casinos to be tethered to the 17 legal casinos inside the state, the physical ones. These casinos would be eligible to offer online casinos, so long as they haven’t eliminated more than 25% of their workforce since 2020.
Moreover, Gonzalez slipped an “emergency clause” into the bill. What’s the emergency? No one really knows. Officially, it says if passed, the bill would take effect immediately, with regulators required to adopt emergency rules within 90 days. On top of that, temporary licenses would have to be issued within 30 days of application.
The funny part? Industry executives have said that’s too aggressive. Take BetMGM CEO Adam Greenblatt, who said building out regulation for a brand-new vertical like online casino usually takes about nine months. Not 30 days. Not 90. BetMGM has a casino in Illinois so his voice matters a lot here.
Aside from that head-scratching rule from Gonzalez, the rest of the bill looks more rational. For one, there would be a 25 percent tax for iGaming, which is less than sports betting (more on that soon too). To get a license, casinos would have to pay a $250,000 prorated fee. Renewals would cost $100,000. Elsewhere, suppliers would pay a $75,000 application fee. Then there are internet management service providers, they would incur a $50,000 fee.
One more tidbit: credit card deposits would be allowed. This has been a lightning rod issue as of late, with top sports betting apps like DraftKings and FanDuel removing this option nationwide. But this bill would allow players to bet with credit, which opens up questions about risk management.
Not Illinois First Rodeo
Illinois has never been shy to expand betting inside the state. We have decades of history by now — riverboat casinos in the 90s and most recently, sports betting this decade. So online casinos seem like the next natural frontier. Really, the only frontier left for the state on the gambling front.
In the past couple of years, lawmakers have floated several versions of what online casinos could look like. But all attempts have been met with resistance from the likes of video gaming terminal operators and even some brick-and-mortar casinos. That’s been enough to stall bills before they ever reach a final vote.
But this time indeed feels different. In the summer of 2025, Illinois Attorney General Kwame Raoul openly suggested at a National Council of Legislators from Gaming States conference that online casino legalization is probably inevitable. Raoul has a lot of weight in Illinois politics so that’s a bigwig you want on your side if you’re Gonzalez, sponsoring this latest bill.
A year ago, Gonzalez’s eerily similar bill failed to make it out of the House Gaming Committee. This year, a committee hasn’t been assigned, but it would certainly be the next step.
Betting Has Become An ATM In Illinois
Want to know another reason why we feel iGaming has real momentum in Illinois this time around as opposed to other years? Lawmakers in the state have begun treating the betting industry like a personal ATM machine.
Sports betting has felt it most. It went from a flat tax of 15 percent to a sliding scale of 20 to 40 percent based on the operator’s revenues. Then they added a 25-to-50-cent fee on every sports betting ticket. Hell, there’s even been talk about adding a 10.25 percent tax on sports bets made inside the city of Chicago.
What’s behind all these ridiculous taxes? Well, a budget shortfall most likely. When Chicago mayor Brandon Johnson released his city budget proposal last year, it included a shortfall of $1.15 billion. Not a typo, that’s legitimately the deficit the state’s biggest city finds itself in.
So yes, they need to cut costs and raise taxes to cover the billion-dollar hole. Now, history tells us that governments — whether it’s city, state, or federal — are practically immune to cutting costs. Raising taxes, though? That’s always the preferred option.
All this makes us bullish on Illinois approving iGaming sooner rather than later. We’d be shocked if it’s not legalized by at least 2027. Maybe it needs another year to get workshopped together, but it doesn’t feel inevitable to us.
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