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Illinois legislators are considering a broader online gambling bill that would also legalize online poker in an effort to dissuade residents from gambling on offshore sites.
The Internet Gaming Act (HB4797), introduced by State Rep. Edgar González, Jr. yesterday, would legalize most forms of online gambling and create a steady stream of tax revenue for the Prairie State.
It’s safe to say that Illinois would represent a massive market for online gambling. The state legalized online sports betting in 2019. It currently ranks second in the U.S. with $1.44 billion in revenue last year.
The new bill would permit retail casinos (and racinos) in Illinois to offer online poker, casino, table games, slots, and live dealer games through partners. Each provider would receive up to three “skins” (branded online platforms) under a single license.
There have been plenty of attempts to legalize online gambling in Illinois over the years, but so far, every bill has failed. In fact, HB4797 is essentially a retread of another online gambling bill, HB3080, which stalled in the House late last year.
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New Bill Includes Provision for Interstate Poker Agreement
Perhaps most important for poker players is that the bill includes a provision for the Multi-State Internet Gaming Agreement (MSIGA).
Players from Illinois would be able to compete against players from New Jersey, Michigan, Nevada, West Virginia, and Delaware, which is absolutely pivotal for building substantial prize pools. Pennsylvania was the most recent addition to MSIGA, joining in April 2025.
With a population of 12.2 million, Illinois would represent a massive liquidity boost for MSIGA and boost the shared player pool to than 50 million people.
Here’s the specific passage of the bill that refers to interstate poker:
The Board may enter into agreements with other jurisdictions to facilitate, administer, and regulate multijurisdictional approved Internet games, including, but not limited to, poker.
Licensees Would Be Subject to 25% Tax, One-Time Fee of $250k
As the bill currently stands, it features one of the heftiest tax rates on online gaming in the country.
Prospective online casinos would be subject to a 25% tax rate in addition to a one-time $250,000 license fee (and $100,000 renewal every four years). Most other states top out at 20% max (although Pennsylvania, Rhode Island, and Delaware have tax rates as high as 62.47% on slots specifically).
There is still time for that aspect of the bill to be amended, however. Previous bills pitched tax rates at 10-15%.
The bill could generate between $400 and $600 million in new tax revenue annually. Gonzalez Jr. argues that money is currently being lost to offshore sites.
Proceeds from the tax would go towards state funds, with special consideration to problem gambling treatment and state pension funding. The tax rate would also include a 5% allocation to the host casino’s location.
Challenges Remain for Legal Online Gambling in Illinois
It’s been a long road to legal online gambling, and there are still plenty of obstacles for the most recent effort.
First off, the Illinois Video Gaming Terminal (VGT) market is the biggest of its kind in the world. It boasts more than 50,000 machines operating at more than 8,700 locations. VGTs generated almost $3 billion in net revenue in 2024, surpassing the revenue of the state’s casinos.
VGT lobbyists will no doubt balk at the prospect of iGaming eating into their business.
Second, Illinois has introduced numerous bills since 2020 with the intent of legalizing online gambling. However, none have progressed past the committee stage.
Finally, there is the typical pushback from unions involved in casinos in the state. Although the inclusion of live dealer games would create some new jobs, fears of cannibalization remain.
The bill is currently assigned to the House Rules Committee and must pass a vote before being presented to the full House.
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