Illinois Governor Proposes Increased Gambling Taxes to Boost State Revenue

Illinois Governor’s Budget Includes Gambling Tax Increase

Illinois Governor JB Pritzker has introduced a $57 billion budget plan for the fiscal year 2027, which includes a proposal to raise taxes on gambling operations. The plan aims to generate an additional $120 million in tax revenue by increasing taxes on table games and electronic gambling devices.

Tax Hike Expected to Support Education Funding

The governor’s proposal targets 15 of the state’s 16 casinos, suggesting that table game tax rates be raised significantly—from the current 15% to 20% range up to between 15% and 50%. Chicago’s casino is excluded from this change as it operates under a different tax code.

Currently, casinos pay 15% tax on adjusted gross revenue up to $25 million, and 20% tax beyond that threshold. The new proposal seeks to revise this structure so that table games are taxed similarly to slot machines and other gambling forms in Illinois.

Illinois has previously explored tax increases on gambling to boost state funds. For instance, last year the state introduced a new tax on sports betting expected to raise about $36 million. However, that change coincided with a notable drop in betting activity, prompting discussions about possibly reversing the law.

Governor Pritzker’s current budget highlights that revenue from casinos and gaming has declined in recent years, causing budget shortfalls and forcing reallocation of resources. The additional taxes collected from the proposed revisions would be directed to the Education Assistance Fund, which supports grants and financial aid programs in the state.

Proposed Regulatory Changes in Gaming Agencies

Beyond tax adjustments, the Governor’s budget outlines plans to reorganize state regulatory agencies overseeing gaming activities. The Illinois Gaming Board and Illinois Racing Board would be combined into a single entity called the Department of Gaming Regulation and Enforcement.

This new department would take over all responsibilities currently managed by the two separate boards. It would be responsible for regulating and collecting taxes from various gambling sectors, including sports betting, casinos, video gaming, horse racing, and off-track wagering.

Leadership of the department would include an executive director and two assistant directors. If the proposal is approved, this consolidation would become effective on July 1, coinciding with the beginning of the new fiscal year in Illinois.