Illinois Representative Edgar Gonzalez Jr. has relaunched efforts to legalize online casinos with House Bill 4797, reviving a measure stalled in 2025. The bill would establish the Illinois Internet Gaming Act, allowing the Illinois Gaming Board (IGB) to license operators to offer up to three branded online casino skins. Gaming would be restricted to residents aged 21 and older, with operators taxed at 25% of adjusted gross gaming revenue.
Gonzalez filed HB 4797 on February 2 after a previous attempt last year failed to advance beyond committee. A companion Senate bill from Sen. Cristina Castro also did not receive a committee hearing.
Legal Gaming and Licensing Rules
The bill permits regulated online slots, table games, poker, and live-dealer games under state oversight. Internet games are defined as online versions or “substantial equivalents” of casino-style gambling.
Licensing provisions include:
- $250,000 initial license fee
- $100,000 renewal fee
- $100,000 management service provider license
- $75,000 supplier license
Operators must implement responsible gambling measures, including self-exclusion, deposit and wagering limits, and age and geolocation verification. Platforms must display: “If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number).”
The IGB may also establish multi-jurisdictional agreements for poker and other online gaming, within state and federal law.
Workforce and Revenue Protections
To limit impact on land-based casinos, the bill blocks licenses for companies that reduced Illinois staffing by 25% or more since February 28, 2020.
“The Board may not issue an Internet gaming license to an owner’s licensee or organization licensee that has reduced the size of its workforce by 25% or more since February 28, 2020,” the bill states. “The Board may not renew the Internet gaming license of any owner’s licensee or organization licensee that has reduced the size of its workforce by 25% since the date its last Internet gaming license was issued or renewed.”
Illinois Attorney General Kwame Raoul said at the National Council of Legislators from Gaming States Summer Meeting that he expects online casino gaming will eventually be legalized.
Tax Structure and Opposition
HB 4797 prohibits local online casino taxes. The 25% statewide tax would be collected, with 5% shared with municipalities and 95% directed to the state general fund. Chicago’s proposed 10.25% wager tax prompted lawsuits from FanDuel, DraftKings, and BetMGM, while Illinois’ online sports betting tax has risen to 40%, with a per-wager fee.
Opposition remains strong. Illinois’ video gaming terminal (VGT) industry, retail casinos, and labor unions argue online gaming could siphon revenue and jobs. Penn Entertainment opposed the 2025 bill, citing over $600 million in state investments. House Gaming Committee Chair Dan Didech said concerns about cannibalization are “well-founded.” Previous bills stalled in committee, and the outcome of HB 4797 depends on whether lawmakers are willing to confront entrenched opposition.
Source:
“Illinois lawmaker starts again down long road to legalizing online casinos”, sbcamericas.com, February 3, 2026
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