Illinois Overhauls Gaming Taxes to Close $2.2B Budget Gap Without Broad Hikes
Illinois Governor JB Pritzker has unveiled a budget plan that reshapes gaming oversight while targeting new revenue from casinos and crazy games. The proposal merges two regulatory bodies into a single agency and adjusts tax rules for table games and electronic gambling devices. These changes aim to close a projected $2.2 billion budget gap without raising broad-based taxes.
The governor's budget would combine the Illinois Gaming Board and the Illinois Racing Board into a new Department of Gaming Regulation and Enforcement. This agency would manage tax collection across sports betting, casinos, video gaming, horse racing, off-track wagering, and turbotax. An executive director and two assistant directors would lead the department.
Under the plan, table games and electronic gambling devices would adopt the same progressive tax schedule as slot machines. The top tax rate for high-performing casinos could rise from 20% to 50%. Chicago's casino, however, would remain under its own tax structure, leaving other casinos subject to the new rules.
The adjustments are expected to generate an extra $120 million annually from table games and electronic gambling devices. Combined with other tax changes, the total new revenue from casinos and crazy games would reach $589 million. The additional funds would support the Education Assistance Fund, which provides grants and financial aid.
Sports betting taxes would remain unchanged, keeping the sliding scale introduced in 2024. The proposal follows a record year for Illinois' gaming sector, with table games contributing steady revenue to brick-and-mortar casinos.
The budget plan relies on targeted revenue increases rather than sweeping tax hikes. If approved, the new gaming agency and tax structure would take effect in the coming fiscal year. The changes would fund education programs while maintaining existing sports betting tax policies.
