Lawmakers Revive Push For Online Casinos Legislation In Illinois

Illinois lawmakers are weighing the future of online casino gaming after Representative Edgar Gonzalez Jr. introduced House Bill 4797, a proposal to legalise and regulate iGaming under a new Internet Gaming Act. The bill follows previous failed attempts by the legislator.

HB4797 would allow online casino activity through licensed operators in Illinois, including existing casinos and racetracks. Approved management service providers could also run platforms on behalf of licensed operators, with each licensee limited to three individually branded skins. The legislation covers a broad range of products, including slots, poker, table games, and live dealer formats.

Licensing model and regulatory structure outlined

Under the proposal, the Illinois Gaming Board would take responsibility for oversight and enforcement. Emergency regulations would need to be adopted within 90 days of passage, with temporary licences issued within 30 days for operators already active in comparable jurisdictions.

Furthermore, primary servers must be located within Illinois within an initial one year period, while wagers placed by anyone physically located in the state would be legally considered as occurring within state borders. Players above 21 years old will be eligible to participate, with operators required to implement age and location verification. They must also prevent access by excluded persons and unauthorised activity.

Licensing costs are clearly defined at $250,000 for internet gaming licences and $100,000 for renewals. Management service provider licences could reach $100,000, while suppliers and certain employees would also need occupational licences. The bill introduces a 25% privilege tax on adjusted gross internet gaming revenue. Its proceeds will be deposited into the State Gaming Fund and 5% allocated to municipalities and counties.

Responsible gaming and market safeguards included

Responsible gambling measures form a central part of the proposal. Operators would be required to provide self exclusion tools, deposit and wagering limits and account suspension features. Advertising would also be restricted for individuals in self exclusion programmes.

HB4797 includes supplier diversity reporting requirements and annual public disclosures by licensees. Another notable provision would bar licences for operators that reduced staffing levels by at least% since February 2020, to ease labour concerns that previously stalled legislation.

Familiar political hurdles in the way of iGaming legislation

Despite the renewed effort, the path to approval remains uncertain. Illinois has considered online casino legislation in every session since 2023, yet previous proposals never reached a final vote. Lawmakers have struggled to balance the potential tax revenue with concerns about cannibalising land-based gaming and protecting existing jobs.

Debate over revenue forecasts and tax structure also slowed earlier bills, with some legislators questioning whether online casino growth projections were realistic enough to justify expansion.

Governor JB Pritzker has previously expressed openness to legalised online gambling. His current term spans until January 2027 and he has announced plans to run for a third term. This could see him available to support the bill even if approval is delayed.