Illinois Lawmakers Introduce Two Online Casino Bills

Key Provisions of SB 1963 and HB 3080

Sponsored by Senator Cristina Castro (SB 1963) and Representative Edgar González, Jr. (HB 3080), the bills outline a framework for legal online casino gaming in Illinois.

While both proposals share the same language, HB 3080 provides more detailed implementation guidelines.

The legislation allows casinos and racetracks to launch up to three individually branded online gaming platforms (skins). This structure mirrors Illinois’ sports betting model, where operators run multiple platforms under one licensee umbrella.

The bills propose strict licensing requirements for operators:

• $250,000 initial license fee per online platform
• $100,000 annual renewal fee
• Separate licensing fees for technology providers and gaming service suppliers

The proposed tax rate for online casino revenue is set at 25%, higher than the 15% retail casino tax but lower than New York’s 51% tax on online sports betting.

Protecting Casino Jobs and Responsible Gaming

A major provision in both bills includes a workforce protection clause. Any casino or racetrack seeking an online license cannot have reduced its workforce by 25% or more since February 28, 2020. Lawmakers designed this rule to prevent job losses and protect workers in brick-and-mortar casinos as online gaming expands.

The bills also include strong responsible gambling measures to protect players:

• Age and location verification to prevent underage and out-of-state gambling
• Self-exclusion programs for problem gamblers
• Mandatory responsible gaming resources on all licensed platforms

Additionally, the legislation allows Illinois to accept bets from out-of-state players—but only if federal law permits or if Illinois establishes agreements with other states.

Supporters estimate that legal online casinos could generate up to $800 million annually in tax revenue. This would make iGaming one of Illinois’ top gambling revenue sources, alongside the lottery and sports betting.