Changes look set to occur across several areas, including increasing casino table game taxes, a reallocation of video game terminal (VGTs) revenue and even the creation of a brand new gambling regulator.
Tax rate changes in Illinois
Pritzker's first port of call is to totally restructure the tax rate across all casino table games at the state's 15 non-Chicago casinos.
Blackjack, roulette and poker are currently taxed either at 15% on adjusted gross revenue (AGR) up to $25m, or taxed at 20% for revenue higher than that.
In the 2027 fiscal year budget, Pritzker is looking to align so that electronic gaming devices such as slots are also taxed. This ranges from 15% on the first $25m, before bumping up to 50% on AGR above the $200m mark.
"Over the years, the State and units of local Government have received lower revenues from casinos, creating gaps in funding or forcing shifts in resources from other causes", stated Pritzker in his budget proposal.
By adjusting the tax on table games, this change could generate around $120m extra in annual tax revenue.
This would only apply to non-Chicago casinos, however, Bally's Chicago temporary casino operates on a different structure.
Further changes are in the works
Increasing tax on table games is just the first of several major steps Pritzker aims to take. A new gambling regulator, the Illinois Department of Gaming Regulation and Enforcement (IDGRE), will look to absorb the Illinois Gaming Board and Illinois Racing Board.
This department would be responsible for collecting all taxes in the state across sports betting, video gaming, horse racing and casino gambling. If the budget is approved, this merger will come into effect on July 1.
Generating extra state revenue
Furthermore, Pritzker could turn to legalizing online casinos in a bid to generate extra revenue in the state.
States such as Michigan, Pennsylvania and New Jersey, have all generated approximately $3bn in annual revenue during 2025.
By applying the 25% tax rate, if Illinois performed similarly to the three aforementioned states, it could be worth between $700m - $800m per year.
Illinois State Representative Edgr Gonzalez Jr has therefore introduced another proposal which aims to legalize this in the state.
Finally, another gambling tax increase looks on the cards. In 2024, the flat 15% tax on sports betting revenue was replaced with a new tiered system that ranged from 20% - 40% depending on how much revenue was generated.
Last year, a new per-bet tax on every sports wager was approved. As such, sportsbooks such as DraftKings began paying $0.25 each wager for the first 20 million bets and then $0.50 after that.
This, however, contributed to fewer bets in the state and in the Fiscal Year 2026 budget, Chicago therefore implemented a 10.25% sports betting tax in order to raise revenue. And there could well be more changes in this area put forward by Pritzker in the near future…
