Illinois Eyes Online Casino Legalization by 2026

Raoul’s Bold Prediction

Kwame Raoul, Illinois’ Attorney General, announced that online casinos with real-money wagering are on the horizon. He called them a “natural continuation” of the state’s thriving sports betting market.

“I have confidence that legalization would come in 2026, with lawmakers finally ready to move forward,” Raoul said, though no action is expected in 2025.

He believes iGaming will be part of Illinois’ next gambling expansion wave.

Sports Betting Sets the Stage

Illinois, the nation’s second-largest sports betting market behind New York, launched mobile sports betting in 2020. The state raked in $1.7 billion in gambling tax revenue in 2024, with projections climbing for 2025.

Recent tax hikes, including a tiered system and per-bet taxes, hit operators like FanDuel and DraftKings, who passed costs to players.

These revenues have lawmakers eyeing iGaming as a lucrative next step to tackle the state’s growing budget deficit.

Online casinos could outshine sports betting in revenue. Eilers and Krejcik estimate Illinois could see $775 million to $1 billion in tax revenue over five years. Digital slots and table games generate “significantly more revenue for operators and taxes” than sports betting, per industry data.

Legal iGaming could make Illinois the top-earning online casino market in the U.S., with billions in annual wagers.

Proponents say online casinos won’t replace brick-and-mortar venues but will complement them, boosting overall gaming revenue.

Legal iGaming would offer safe alternatives to unregulated offshore sites, protecting players while funneling tax dollars to public infrastructure. Raoul sees it as a strategic move to cut Illinois’ deficit while expanding gaming options.