Online casino legislation is back on the table in Illinois as lawmakers attempt to break a years-long stalemate over legalising internet gaming in one of America’s most populous states.
State Representative Edgar Gonzalez Jr. has refiled his Internet Gaming Act for the 2026 session, reviving a proposal that stalled in committee last year without reaching a full House vote.
The bill carries the same core structure as its 2025 predecessor, including a 25% tax on gross gaming revenue, a three-skin licensing limit per operator, and oversight from the Illinois Gaming Board.
Under the proposal, regulated online slots, table games, live dealer casino products, and poker would all become available to Illinois residents aged 21 and over.
The Sports Betting Alliance, which represents major operators including BetMGM, DraftKings, FanDuel, and Fanatics, is pushing hard for the legislation to advance.
The SBA has donated approximately $398,200 to more than 100 Illinois lawmakers since June, reflecting how seriously the industry is treating this session.
Supporters argue that legalisation could generate close to $1 billion annually in new state tax revenue, a figure that carries extra weight given Governor JB Pritzker’s recently proposed budget included a $3 billion deficit.
Opposition remains significant, however, with the National Association Against iGaming raising concerns about the threat of customer cannibalisation from the state’s brick-and-mortar casino sector.
Labor unions have also pushed back, and House Gaming Committee Chair Dan Didech has stated the bill faces a long road because of what he described as opponents’ well-founded concerns.
To address cannibalisation fears, Gonzalez included a provision blocking licenses from companies that have reduced their in-state workforce by more than 25% since February 2020.
The Illinois debate mirrors a wider pattern playing out across the country, where revenue potential is driving renewed legislative energy but retail opposition and political inertia are slowing progress.
Eight states now have legal online casino markets, with Maine the most recent addition after signing its legislation in early 2026, though the market there has yet to launch.
New York remains the biggest prize on the horizon, where disagreements over tax rates, which range between 25% and 50% depending on the proposal, and the number of licenses to be issued continue to hold back what could become the largest iGaming market in the United States.
Virginia, Indiana, and Maryland have all shelved their respective bills for 2026 after failing to reach agreement before legislative deadlines, leaving the national expansion picture largely unchanged.
Gambling tax has been a hot topic in other parts of the world, too. In the UK, Remote Gaming Duty (RGD) increased from 21% to 40% on April 1st 2026, affecting online operators like 666 Casino, among others.
Pennsylvania and New Jersey remain the benchmarks, with iGaming revenue in both states surpassing land-based casino income for the first time in 2025, a milestone that legislators in stalled markets are finding increasingly difficult to ignore.
