Illinois Lawmaker Reintroduces Online Casino Legislation for 2026
State Representative Edgar Gonzalez Jr. continues his effort to legalize online casinos in Illinois by reintroducing the Internet Gaming Act for the 2026 legislative session. The bill largely retains the same provisions as last year, although it did not advance beyond committee in previous sessions.
In earlier attempts, the bill was paired with a Senate companion introduced by Senator Cristina Castro, and it is expected that similar collaboration will occur this year.
Legislation Framework and Market Potential
The proposed legislation aims to authorize regulated online casino gambling throughout Illinois, covering games such as slots, table games, poker, and live dealer options, all regulated by the Illinois Gaming Board.
Currently, Illinois hosts nearly 8,700 licensees operating close to 48,700 Video Gaming Terminals statewide. Advocates believe that approving the bill could position Illinois as one of the largest internet gaming markets in the U.S., building on the state’s already strong sports betting industry.
House Bill 4797 would officially establish the Internet Gaming Act, defining internet gaming as online versions of traditional casino gambling that can only be offered by licensed operators adhering to Gaming Board regulations.
Financially, the bill proposes a 25% privilege tax on adjusted gross gaming revenue, with all tax proceeds directed to the State Gaming Fund. Local municipalities would be prohibited from imposing their own iGaming taxes.
Each casino or racetrack license holder would be permitted to manage up to three online brands, potentially leading to as many as 51 online platforms across the state. Licensing fees are planned at $250,000 for initial licenses and $75,000 for suppliers.
The Illinois Gaming Board would be required to implement emergency rules within 90 days after the law’s passage to expedite the rollout.
Focus on Responsible Gaming and Workforce Protections
Responsible gaming is a cornerstone of the bill. Operators must verify each player’s age, identity, and location to ensure participants are at least 21 years old and physically within Illinois.
The bill also mandates that platforms provide self-exclusion options, set spending limits, and display prominent responsible gambling messages at every login. The message must include: “If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number).”
Addressing labor concerns, the bill prohibits issuing internet gaming licenses to operators that have reduced their retail workforce by 25% or more since February 28, 2020.
Last year’s effort stalled after one committee hearing, with proponents citing potential tax revenue gains and opponents warning of negative impacts on physical casinos and video gaming terminal revenues. These debates are expected to continue as the bill moves forward.
While the reintroduction demonstrates ongoing commitment, the bill’s future remains uncertain, hinging on whether lawmakers are willing to overcome the political opposition that previously hindered its progress.
