Illinois Lawmakers Again Exploring iGaming Legalization

• Illinois Rep. Edgar Gonzalez Jr. (D-104) has filed an iGaming bill for the second year in a row
• The bill is similar to one he introduced in 2025
• If approved, license holders will be able to partner with up to three iGaming operators

For the second year in a row an Illinois lawmaker is wading back into the iGaming landscape.

Rep. Edgar González, Jr. (D-104) introduced HB 4797, a bill to legalize iGaming in the Prairie State. The Internet Gaming Act will allow legal Illinois online casino games and license holders to partner with up to three iGaming operators if signed into law.

His bill is similar to one he introduced in 2025 as well.

Cannibalization on its Mind

The iGaming bills will tax online casino games at a rate of 25% of adjusted gross revenues. Operators will be able to deduct free play and promos from their gross revenues.

The fee for an iGaming license will be set at $250,000 and the license renewal fee will be set at $100,000.

In an effort to reduce potential cannibalization and job loss to land-based Illinois casinos, the legislation prohibits the Illinois Gaming Control Board from issuing a license to a casino that has reduced the size of its workforce by 25% or more since Feb. 28, 2020.

“The Board may not renew the internet gaming license of2any owners 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,” the legislation also reads.

Concerns over cannibalization have held up discussions and stunted legalization chances in Illinois – and other states – for the past several years. The legislative quirk is a clear attempt to find a solution to concerns over lost revenues and employment at land-based casinos.

State lawmakers have attempted to find solutions to cannibalization as concerns have presented themselves each year. In New York, Sen. Joseph P. Addabbo Jr. (D-15) introduced SB 2164 last month, which seeks to legalize iGaming in New York. If approved, casinos, video lottery terminal facilities, online sports betting operators, and New York tribes will be eligible to offer iGaming.

Included in the legislation is a fund to earmark $25 million in each fiscal year for the purpose of employee training, responsible gaming training and education, healthy, and development. Addabbo previously told Sports Betting Dime it’s simply a placeholder to address iGaming cannibalization concerns from the union. He’s open to negotiations to move forward and find a solution to legalize an iGaming bill.

Illinois iGaming Bill Details

The bill sets the minimum age to participate in iGaming at 21.

Each iGaming platform will have to include responsible gaming language upon users signing into their accounts. Each platform must display the words “If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number)” or comparable language approved by the Illinois Gaming Control Board.

The language must include the words “gambling problem” and include a number to a problem gambling service when a user logs into their account.

Slots, poker, table games, and live-dealer simulcast games will be eligible under the bill.

All iGaming tax revenues will be deposited into the state gaming fund.