Illinois is adjusting its approach to gambling revenue with the Fiscal Year 2027 budget, proposing higher taxes on casino table games while easing pressures on sportsbooks. Governor JB Pritzker’s plan, which totals $57 billion, signals a strategic shift in revenue priorities for the state’s gaming industry and reflects modest overall growth of 1.6 percent from the previous year.
Progressive Taxes Target Table Games
Under current law, slot machines at Illinois’ 17 casinos are taxed progressively between 15 and 50 percent, whereas table games follow a simpler rate of 15 percent on the first $25 million in adjusted gross revenue and 20 percent on revenue above that. The FY2027 proposal applies the same progressive model used for slots to table games, potentially raising rates to 50 percent. Officials estimate this adjustment could generate roughly $120 million in additional revenue, contributing to a projected $589 million in increased income from casinos overall.
Meanwhile, sportsbook operators will see relief. After years of rising costs—including a shift from a flat 15 percent tax to a progressive 20–40 percent rate in FY2025 and a per-wager surcharge introduced in FY2026—the new budget does not add further tax burdens. The surcharge alone generated $62.2 million in its first half-year, exceeding expectations. Lawmakers have debated repealing it, but the FY2027 proposal effectively pauses additional taxation for sports betting. This change provides the industry with a more predictable financial environment while maintaining revenue growth from other gambling sectors.
Streamlining Gaming Oversight
Pritzker’s plan also includes a structural change, proposing to merge the Illinois Gaming Board (IGB) with the Illinois Racing Board (IRB). The consolidation aims to improve regulatory efficiency amid challenges facing the state’s horse racing sector. Fairmount Park seeks to convert into a racino, while Hawthorne Race Course has struggled financially, including suspension of its harness racing license. A single oversight authority would supervise both gaming and racing activities, offering more consistent governance and support for struggling venues.
Additional legislation from State Rep. Yolanda Morris would create an Illinois gaming oversight officer to recommend policies, coordinate across state agencies, and support diversity initiatives. Amendments to the Video Gaming Act included in the bill would ensure applicants cannot be denied licenses based on compliance with certain devices. Taken together, these measures aim to enhance transparency and regulatory stability across the state’s gaming ecosystem.
Chicago Expands Video Gaming
Illinois’ gaming strategy is mirrored at the municipal level. Chicago’s 2026 budget legalized video gaming terminals to address a $1.1 billion deficit, reflecting how cities increasingly rely on gaming revenue to stabilize finances. While this approach provides a new funding source, debates continue over its economic and social implications, including responsible gambling measures and community impact.
By shifting revenue collection toward table games and consolidating oversight functions, Illinois seeks to balance fiscal growth with regulatory efficiency, while providing relief to its sports betting industry and expanding opportunities in both casino and video gaming sectors. These changes are expected to have a long-term effect on the state’s gaming landscape and financial planning.
Source:
“Illinois Governor moves to update casino table game taxes”, sigma.world, February 24, 2026
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