Illinois residents who enjoy gambling can choose from a broad range of activities, including in-person wagering on thoroughbred horses at Fairmount Park, commercial gaming at Harrah’s Joliet, online sports betting, lotteries, and social gaming. All these activities are legal and regulated in the Prairie State.
The gambling opportunities here are not as abundant as those in states like Nevada, but this hardly impedes the growth of the local industry. Data released by the Illinois Gaming Board reveal that the state generated over $1.7 billion in commercial gambling revenue in 2021 alone. The Prairie State is home to various gaming vendors and commercial casino operators that provide employment to over 15,300 residents.
The state government collects more than $923 million in tax revenue from authorized gambling businesses each year. Gambling-related tax money is crucial to funding the state’s public school system and its infrastructure. Approximately ten commercial gaming venues are scattered across the state at the time of writing. Riverboat casinos are also legal here but have begun to phase out in favor of land-based operations.
The only thing Illinois currently lacks is a full-fledged online gaming industry. The state legislature gave the thumbs up to online sports betting back in 2019, paving the way for the arrival of major sportsbooks like FanDuel and DraftKings. Locals also have access to daily fantasy sports and online lotteries, but online casino games remain illegal for the time being.
Gambling Laws in Illinois
Various gambling products are legal in Illinois, but operators must first obtain licenses from the appropriate regulator. Running a gambling business without proper authorization is a criminal offense in Illinois. All forms of illegal gambling and their corresponding sanctions are outlined in the Illinois Criminal Code.
Illinois Criminal Code
Native American Gaming Compact Act
Illinois Gambling Act
Illinois Video Gaming Act
Illinois Lottery Law
Illinois Criminal Code
Gambling is illegal in the Prairie State, unless it falls under the exemptions outlined in Article 28 of the Illinois Criminal Code. These exemptions include authorized pari-mutuel wagering on horse races, video gaming terminals, bingo, poker, lotteries, raffles, charitable games, casino gambling, and sports betting. Providing any of these products legally requires a license.
Skill and chance-based games also qualify for the exemptions, provided players are not required to pay to participate. Possession of antique slot machines is not illegal as long as the owners do not use them for unlawful gaming activities. For the purposes of the law, an antique slot is one manufactured at least twenty-five years ago.
Redemption machines and crane games are not considered illegal gambling devices under the Criminal Code. The Attorney General of Illinois has the authority to impose sanctions on anyone who violates the provisions in Article 28.
Individuals who operate illegal gambling on boats, in vehicles, or on real-estate properties are guilty of Class A misdemeanors. Repeat offenses of this kind constitute Class 4 felonies, which carry prison terms of one to three years and/or maximum fines of $25,000 for individuals and $50,000 for corporations. Class A misdemeanors are less serious, so convictions result in jail time of less than a year (up to 364 days) and/or fines of up to $2,500.
Native American Gaming Compact Act
Native American casinos are operated by sovereign nations on tribal lands held in trust. Such venues exist in many US states, but Illinois is not currently among them. A tribal casino could begin legal operations in the state if the Illinois General Assembly approves the Governor’s compact with a federally recognized tribe under the Native American Gaming Compact Act.
Illinois Gambling Act
The Illinois Gambling Act is the statute that governs commercial casino gaming in the Prairie State. Governor Jay Robert Pritzker signed the Act into law in June 2019, authorizing games conducted in land-based casinos. The legislation allowed existing riverboat casinos to move onto land and authorized six new gambling venues that have yet to open.
At the time of writing, commercial casino gaming is available in Rock Island, Joliet, Aurora, Des Plaines, Elgin, Metropolis, Rockford, East Peoria, Alton, and East Saint Louis. The law also permits the operation of so-called racinos, that is, facilities combining racetracks and casinos. To do so, racetracks must obtain commercial gaming licenses from the Illinois Gaming Board.
Authorized operators may offer slot machines, electronic games of chance, and table games on their premises. Under the 2019 Act, Organization Gaming licensees based in Cook County may operate no more than 1,200 gaming positions, while those located in other counties are limited to 900.
Holders of Owners licenses are limited to 2,000 gaming positions. A new casino project underway in Chicago will be capped at 4,000 positions. Allowed table games include craps, blackjack, house-banked poker, roulette, klondike, pai gow, sic bo, and baccarat.
Illinois Video Gaming Act
Slots and other gambling machines became legal in Illinois after the passage of the Illinois Video Gaming Act in 2009. The state decriminalized this form of gambling to generate additional tax revenue and mitigate the effects of the global financial crisis that struck the country the previous year.
The legislation authorized the operation of up to five gaming terminals in licensed non-gaming venues such as drinking establishments, smaller truck stops, fraternal establishments, and veteran facilities. Larger truck stops may install up to ten terminals. All licensed gambling machines are audited by independent testing laboratories approved by the Illinois Gaming Board (IGB). Their theoretical player return must be at least 80%.
Another provision stipulates that machines cannot pay players directly by dispensing coins or banknotes. Instead, the player receives a receipt ticket and redeems it for cash from an authorized employee. The allowed credit denominations are ¢1, ¢5, ¢10, ¢25, and $1, with a $4 wagering limit per round. Cash awards per round must not exceed $1,999, and prizes from progressive or fixed jackpots are capped at $10,000.
Illinois Lottery Law
State-sanctioned lotteries arrived in Illinois after the passage of the Lottery Law in 1974. The legislation created the Illinois Lottery Control Board (ILCB), which regulates this form of gambling together with the Department of Lottery (DOL). The ILCB consists of five members, all of whom must be US citizens and Illinois residents. No more than three members may belong to the same political party.
Unclaimed prizes and most profits generated by the state lottery go to the Common School Fund, which provides financial aid to K-12 public schools. The remainder is transferred to the Capital Projects Fund for local infrastructure improvements, with a portion allocated to social initiatives such as multiple sclerosis research and breast cancer charities.
The state lottery is operated by the UK-based Camelot Group. Illinois residents can purchase tickets online and access multi-jurisdictional games like Mega Millions and Powerball.
Licenses Required for Commercial Gambling
The Illinois Gambling Act authorizes several types of licenses for commercial gambling. Interested land-based operators must apply for Owners licenses, while racinos need Organization Gaming licenses. Supplier permits are required for the manufacture, sale, and distribution of gaming machines. The IGB may issue no more than sixteen casino gambling permits, ten of which have already been granted.
Owners and Organization Gaming Licenses
Licenses for Video Gaming Terminals
Occupational Licenses
Owners and Organization Gaming Licenses
All three permit types require applicants to submit forms to the IGB and pay the associated fees. The companies’ chief executive and chief operating officers are subject to thorough investigation and must file full disclosure forms with the regulator. The same requirement applies to individuals who own more than 25% of the company or hold significant voting rights.
The agency then conducts a detailed review of each application, examining the applicants’ integrity, financial capacity, and industry experience. It also considers their education and criminal background.
If the investigation yields satisfactory results, the IGB issues an Owners or Organization Gaming license. At the time of publication, Illinois has two preliminarily suitable candidates for Organization Gaming permits (Fairmount Park and Hawthorne Race Course) and ten holders of permanent Owners licenses. All gambling permits issued by the IGB are non-transferable.
Licenses for Video Gaming Terminals
Applicants seeking to operate video gaming terminals (VGTs) outside commercial casinos undergo similar investigations. However, the establishments’ owners and key management officers must also submit fingerprints to the regulator. The IGB focuses primarily on the applicants’ criminal background and compliance with state and federal tax laws. The facilities where the applicants intend to install gaming terminals are subject to additional inspections.
Occupational Licenses
Occupational licenses are required for casino employees who work on the gaming floor. Dealers, boxmen, and other floor personnel directly involved in gambling operations must be at least 21 years old.
Staff members who perform non-gaming functions must be at least 18. Applicants for occupational permits must provide two sets of fingerprints. Those who submit false information, lack the necessary qualifications, or have violated state gambling laws are likely to have their applications denied.
Player Protection Measures and Responsible Gambling
Players must be at least 21 years old to enter commercial casinos and racinos in Illinois. Lottery participation is possible for persons aged 18 and above. Gambling venues cannot operate in proximity to universities, schools, churches, or other places of worship. The Illinois Liquor Control Commission prohibits casinos from giving away free alcoholic beverages.
Additionally, local players who struggle to control their gambling can voluntarily add themselves to the state self-exclusion program. Exclusion lasts for a minimum of five years, after which the rehabilitated gambler can request removal.
It is at the operators’ discretion whether to continue serving gamblers after their removal from the list. If the venue is part of a larger casino chain, the operator has the right to prohibit the excluded gambler from entering any of the affiliated establishments.
A separate registry is available to persons who wish to exclude themselves from playing video gaming terminals outside casinos or racinos. Players who add themselves to the VGT registry receive regular emails with advice and links to various prevention or treatment programs in the state. Unlike regular casino gamblers, problem VGT players can remove themselves from the exclusion registry at will. Moreover, the registry is available to both Illinoisans and problem players from other states.
Licensed operators must post signs with information about receiving help for problem gambling at the exits and entrances of their venues. The Prairie State does not have any specific limitations on the marketing of gambling products and services.
Sports Betting Regulation in Illinois
Illinois was among the first states to embrace sports betting after the 2018 repeal of the nationwide ban under PASPA. The State Legislature approved the Sports Wagering Act in June 2019, paving the way for gambling expansion in the state. The law allows in-person, online, and mobile wagering on professional sports, motorsports, and collegiate events.
Approved Retail and Online Sportsbooks
Licensing Fees and Requirements
No In-Person Registration for Online Punters
Approved Retail and Online Sportsbooks
Betting on the outcomes of political elections is prohibited in Illinois. Commercial casinos, racetracks, and up to seven sports arenas that seat more than 17,000 spectators may apply for master betting licenses from the Illinois Gaming Board.
As of this writing, roughly ten operators hold permits to offer betting services. Online sportsbooks available to Illinoisans include FanDuel, DraftKings, BetMGM, BetRivers, PointsBet, and Caesars. Unibet has applied for a license but has yet to receive approval from the IGB.
The Fairmount Park and Hawthorne racetracks also have permission to offer sports wagering. No sports facilities hold licenses at the moment. Approved suppliers of sports wagering software include Novomatic, NYX Digital Gaming, and SBTech Malta Limited.
Licensing Fees and Requirements
Companies seeking master sports betting licenses must submit the required documents and pay an application fee. Each approved licensee may operate no more than one online sportsbook skin in Illinois.
The Prairie State is a lucrative market, but the upfront licensing costs are substantial. Existing casinos and racetracks must pay the lower of $10 million or 5% of their annual gambling revenue and wagering handle.
Newly authorized land-based operators pay 5% of adjusted gross receipts (AGR), capped at $5 million. Sports facilities that wish to accept wagers face $10 million in initial fees, while online-only permits cost $20 million. On the plus side, licensees are not subject to integrity fees, unlike in some states such as Indiana.
Licenses expire every four years and can be renewed for $1 million. Online and land-based licensees also pay a 15% tax on their gross betting revenue. Profits from bets placed in Cook County and Chicago are subject to an additional 2% tax.
No In-Person Registration for Online Punters
Before March 5, 2022, Illinois bettors who wanted to wager via mobile apps or the internet had to register their accounts in person at a land-based betting facility. Locals no longer face this inconvenience thanks to recent changes to the Illinois sports wagering legislation.
The amendments also authorized limited betting on local collegiate events, provided wagers are placed in person. Under the new rules, bettors may only wager on outcomes or final scores (tier 1 wagers) of in-state collegiate games. The law prohibits betting on the performance of individual collegiate athletes. Residents who have self-excluded from casino gambling cannot place sports wagers during their exclusion period.
Legal Status of Online Casino Gambling
As mentioned earlier, legal online casino gambling has yet to arrive in the Prairie State. Locals have no access to online slots or table games like blackjack, roulette, and baccarat. The only available forms of online gaming in Illinois are sports betting and the state-sanctioned lotteries.
Daily fantasy sports are another legal alternative for Illinoisans, who can enjoy them at leading websites like DraftKings and FanDuel. Betting on live horse racing events is also possible at locally authorized racebooks.
Given the limited range of options, it is unsurprising that some Illinoisans choose to satiate their appetite for interactive gambling at offshore online casinos. Such players, however, have no legal recourse in cases of refused or delayed payments. To our knowledge, the Illinois authorities neither block access to such unauthorized sites nor prosecute locals for using their services.
Illinois Gambling Regulator
Before we wrap things up, here are a few words about the local regulatory body, the Illinois Gaming Board (IGB). Created by the passage of the Illinois Gambling Act, the IGB takes on oversight and licensing responsibilities, regulating the operations of commercial casinos, racinos, and sportsbooks. It supervises them in both online and land-based forms.
The IGB also carries out routine audits that aim to preserve the integrity of the local gaming industry. The Board consists of five members selected by the Illinois Governor with the approval of the Illinois Senate.
All key persons employed by the IGB are prohibited from participating in gambling at local casinos. Only residents of the Prairie State can become board members of the IGB. Board members serve a three-year term, and only three of them can have the same political party affiliation.
Conclusion
Illinois legislation ensures a properly regulated gambling environment for residents looking to wager on lotteries, land-based casino games, poker, bingo, and sports events. Several legal online sportsbooks have already gone live in the Prairie State.
Residents also have the option to purchase tickets for the state-sanctioned lottery over the internet, but online casino games remain illegal for the time being. Given how lucrative these activities could be from a tax perspective, state lawmakers may eventually change their current stance and introduce legislation to regulate them in the future.
