Illinois online casino bill returns for 2026 session

• State Representative Edgar Gonzalez Jr. filed House Bill 4797 on 2 February to legalise online casinos in Illinois.
• The bill proposes a 25% tax on adjusted gross gaming revenue, with potential for up to 51 platforms statewide.
• Illinois Gaming Board recently issued over 60 cease-and-desist letters to illegal sweepstakes casino operators.

Illinois State Representative Edgar Gonzalez Jr. has reintroduced legislation to legalise online casinos in the state, marking the latest attempt to expand the state’s regulated gaming market.

House Bill 4797, known as the Internet Gaming Act, was filed on 2 February 2026 for the new legislative session.

Bill mirrors previous proposals

The reintroduced measure closely follows prior versions that failed to advance through the legislature. HB4797 proposes a 25% tax on adjusted gross gaming revenue, with all proceeds directed to the State Gaming Fund. Local municipalities would be prohibited from imposing additional taxes on online casino operations.

Under the bill’s framework, each licensed casino or racetrack in Illinois could operate up to three online brands. This structure could potentially support as many as 51 platforms across the state, given the current number of licensed venues.

Initial licensing fees are set at $250,000 for casinos and racetracks, whilst partner and supplier fees range from $75,000 to $100,000. Industry analysts estimate the proposed framework could generate approximately $800 million in annual revenue at the proposed tax rate.

The Illinois Gaming Board would be required to adopt emergency rules within 90 days of the bill’s passage to implement the regulatory framework.

Limited progress in committee

As of 6 February 2026, HB4797 passed first reading in the House and was referred to the Rules Committee. No further progress has been reported in the subsequent week. The bill’s previous iteration stalled in committee last year after a single hearing, encountering resistance from established gaming interests.

Physical casino operators and video gaming stakeholders have opposed similar measures, citing concerns about potential impacts on employment and revenue at brick-and-mortar facilities. These objections contributed to the bill’s failure to advance beyond committee consideration in prior sessions.

State targets illegal operators

In a parallel development, the Illinois Gaming Board and Attorney General issued more than 60 cease-and-desist letters to illegal online sweepstakes casinos on 5 February 2026. The enforcement action demands these operators block access to Illinois users to protect the state’s regulated gaming framework.

The coordinated enforcement effort reflects growing concern about unregulated gaming platforms operating in the state whilst legal online casino legislation remains pending.

Senate companion bill expected

State Senator Cristina Castro is expected to file a companion bill in the Senate, continuing multi-year efforts to establish regulated online casino gaming in Illinois. The dual-chamber approach mirrors strategies used in previous legislative sessions, though none have successfully navigated both houses.

Illinois joins several states where online casino legislation has faced repeated setbacks despite recurring introductions. The state already operates a regulated online sports betting market, which launched in 2020 and has generated substantial tax revenue.

The reintroduction comes as neighbouring states continue to evaluate or expand their own online gaming frameworks, creating competitive pressure on Illinois lawmakers to act. However, the bill faces the same fundamental opposition from land-based gaming interests that derailed previous attempts.

The outcome could influence Illinois’ position in the expanding online casino market across the United States, where operators and regulators continue to shape the regulatory landscape state by state.