Casinos in Illinois, that are not located in Chicago, may be taxed differently if Governor JB Pritzker's budget proposal is passed.
His plan involves changing how Illinois casinos are taxed, particularly targeting table games.
Currently, the tax rates for table games in most Illinois casinos (outside Chicago) range from about 15% to 20%. Pritzker's proposal seeks to align these rates more closely with the higher taxes applied to slot machines, which can go up to 50% in the upper tiers.
This adjustment is expected to generate an additional $120 million in state revenue. The government's rationale is to create an equal tax landscape across different casino game types rather than imposing an outright gaming tax increase. Illinois's gaming industry is coming off a record year.
This remains a proposal—it requires legislative approval and could be modified or rejected. Despite these proposed changes, it's important to note that sports betting will not face major new taxes under this proposal, like the industry did last year, which offers some relief to that sector.
How Casinos Are Taxed in Illinois
Illinois imposes two main taxes on casino gambling operations (outside of the special Chicago casino structure):
- Admissions Tax — A flat fee per patron entry:
- $3 per person at most casinos.
- $2 at Bally’s Quad Cities Casino.
This is a per-visit tax collected from patrons. - For electronic gaming devices (slots and similar):
A multi-tier graduated rate based on annual AGR tiers:- 15% on the first $25 million
- 22.5% on $25M–$50M
- 27.5% on $50M–$75M
- 32.5% on $75M–$100M
- 37.5% on $100M–$150M
- 45% on $150M–$200M
- 50% on anything over $200 million
This higher top rate applies to high-volume properties, especially larger or busier casinos.
- For table games:
A much simpler and lower structure (established in 2020, changes via gaming expansion laws):- 15% on AGR up to and including $25 million
- 20% on AGR in excess of $25 million
No further tiers—this caps at 20%, even for very high-revenue table games operations.Wagering Tax (Privilege Tax) — This is the primary revenue source for the state, applied to Adjusted Gross Receipts (AGR) — gross gaming revenue minus payouts to players.
The tax is graduated (progressive) and treats electronic gaming devices (EGDs/slots/video poker/etc.) differently from table games (e.g., blackjack, roulette, poker, craps).
These rates apply to the 15 non-Chicago casinos (10 riverboats + newer land-based ones like in Rockford, Danville, etc.). The Chicago casino (Bally’s temporary site with permanent planned) has its own modified graduated structure, separate city taxes, and different handling for table vs. electronic games.
What Changes for Illinois Casinos in the 2027 Budget?
Governor Pritzker's proposal aims to realign taxes so that table games are taxed under the same progressive structure as slots and electronic gaming devices (EGDs), with tiers ranging from 15% to 50%.
This change would eliminate the current 15%/20% cap for table games and apply the higher brackets where the adjusted gross revenue (AGR) justifies it.
The change is projected to generate about $120 million in additional state revenue annually, helping to close part of the budget gap without broad tax hikes. It would not affect the separate tax structure for the Chicago casino.
The Impact on Casinos in Illinois
For casino operators in Illinois, this proposed tax overhaul presents both challenges and opportunities.
On one hand, the increased taxes on table games could mean higher operational costs, potentially influencing decisions about game offerings and pricing. However, by targeting table games and not slot machines or sports betting, the proposal seeks to balance the tax burden across gaming types without causing a major disruption to the casino industry as a whole.
Additionally, the proposal still requires approval from the Illinois General Assembly, meaning negotiations could lead to changes in the final tax rates or implementation strategies. As such, stakeholders in the casino industry must remain attentive to legislative developments.
Why This Matters for Illinois Residents
Governor Pritzker emphasizes that the proposed budget is family-focused and aims to avoid major tax hits on everyday taxpayers.
By targeting specific revenue sources like casino tax adjustments rather than broad-based increases, the budget seeks to raise necessary funds while protecting core services and maintaining affordability for working families.
This approach reflects a broader strategy to address Illinois' projected budget gap of around $2.2 billion through targeted measures rather than widespread taxpayer impact. Part of the solution involves updated revenue assumptions, new revenue streams, and careful adjustments to existing taxes and fees.
What's Next for Casino Taxes and the Illinois Budget?
As discussions unfold in the Illinois General Assembly, residents and industry stakeholders alike will be watching closely to see how the proposed changes to casino taxes evolve. The balance between generating revenue and maintaining a favorable business environment for casinos is crucial in supporting Illinois' fiscal goals and economic health.
Governor Pritzker's budget paints a picture of fiscal discipline and strategic investment in key areas like education, public safety, and healthcare, all while trying to safeguard the economic interests of working families. As such, the proposed changes to casino taxes represent a focused effort to support these broader objectives.
All in all, the changes in gaming taxes proposed in Governor Pritzker's budget are part of a wider strategy to ensure a balanced budget while addressing specific revenue needs in Illinois. By keeping an eye on these developments, Illinois residents and casino operators can better understand the evolving financial landscape and its implications.
