The latest state to join other states in legalizing online casino gaming and sports betting is Illinois. Senator Cristina Castro as well as Representative Edgar Gonzalez have filed bills in the Senate and the House that would create the Internet Gaming Act, thus legalizing and regulating online casino gaming in the state.

With Illinois Governor JB Pritzker hinting at the potential benefits of legalizing online casinos, lawmakers in the state have taken a decisive step toward making it a reality. On Thursday, Senator Cristina Castro and Representative Edgar Gonzalez were able to file House Bill 3080 and Senate Bill 1963, introducing the "Internet Gaming Act" to legalize and regulate online casino gambling in the state.

The proposal positions Illinois among a growing number of states considering the legalization of online casinos in 2025. Should the legislation pass, it would significantly expand the state's gambling landscape, following the successful launch of sports betting under Pritzker's administration.

Key details of Illinois' online casino proposal

The proposed legislation outlines a framework that would allow existing casinos and horse racing tracks in Illinois to offer online gambling services. Each licensed entity would be permitted to operate up to three online "skins," or branded platforms. To obtain a license, operators would need to pay a fee of $250,000. In terms of taxation, the state plans to impose a 25% tax on gambling revenue. Analysts estimate that this could generate as much as $800 million annually in tax revenue - a substantial boost as Illinois faces a projected $3 billion budget deficit.

An interesting provision within the bill addresses potential job loss, a common concern in gambling expansion debates. In order to renew their online casino licenses, operators must maintain their workforce, avoiding reductions of 25% or more since the initial license was given. This clause appears to target fears of cannibalization, where online gambling might draw business away from traditional brick-and-mortar casinos, potentially leading to layoffs.

Pritzker's stance on online casinos

Governor Pritzker has not yet officially endorsed the proposal, but his comments suggest growing openness to the idea. In a statement last month, Pritzker described online casino legalization as "worthy of consideration." His administration has already overseen the significant expansion of gambling in the state, including the rollout of sports betting, which has proven to be a lucrative venture.

With the governor set to unveil his proposed budget later this month, many speculate that online casino revenue projections could be factored in as a potential solution to the looming deficit.

A history of online gaming efforts in Illinois

This is not the first time Illinois lawmakers have attempted to legalize online casinos. Sen. Castro has already introduced similar legislation in 2021 as well as 2023, framing it as a tool to boost state revenue. Rep. Gonzalez also filed a 2023 proposal, though it did not gain traction until it was assigned to the House Gaming Committee last spring.

Illinois operates on a two-year legislative session, providing lawmakers with ample time to revisit and refine these proposals. The renewed push in 2025 signals broader national trends as more states explore the potential economic benefits of online gambling.

National momentum for online casinos

Illinois is not alone in its pursuit of online casino legalization. Several states are actively considering similar measures in 2025. In Indiana, for example, a proposal has successfully passed its first committee hurdle, while Maryland legislators recently engaged in a six-hour discussion on the topic, building on efforts from the previous year.

New York Senator Joe Addabbo is optimistic that his proposal will gain momentum during this legislative session. Meanwhile, lawmakers in New Hampshire, Virginia, and Massachusetts have also filed their own bills aimed at legalizing online casinos.

As states grapple with budget shortfalls and search for new revenue streams, online gambling presents an increasingly attractive option. With Illinois now officially in the mix, the national landscape of online casino legislation continues to evolve rapidly.