Illinois is home to one of the largest gaming markets in America, and it's set for a year of growth - and potentially, huge change - in 2026.
Illinois sports betting: Where things stand
The Illinois legislature approved sports betting at riverboat casinos, horse racetracks, and several sports facilities in 2019. Online sports betting was legalized in June 2020, and the state now has 10 online sportsbooks available for customers. Options include:
- Bet365
- BetMGM
- BetRivers
- Caesars
- Circa
- DraftKings
- Fanatics
- FanDuel
- Hard Rock Bet
- theScore Bet
Illinois sports betting enthusiasts can wager on a plethora of markets, although they are prohibited from wagering on in-state colleges and universities.
The state in 2024 also imposed a new tax rate, increasing the flat rate of 15% to a sliding scale of 20% to 40%. On July 1, it imposed an additional per-bet tax of 25 cents on operators’ first 20 million online bets and 50 cents on every bet thereafter in a given year.
The increase sparked immediate outrage and caused sportsbooks to respond with various policies, including wagering minimums and 25-50 cent surcharges for customers.
Enjoying Covers content? Add us as a preferred source on your Google account
What's next?
The quest to increase tax revenue might only just be beginning in Illinois. Chicago Mayor Brandon Johnson, in his Fiscal Year 2026 budget plan, proposed a 10.25% charge on online sports betting revenue generated inside city limits.
The revenue would be used to help reduce a projected $1.1-billion local deficit.
In response, 30 House Democrats in November urged the city council to nix the budget proposal, fearing its approval would encourage other municipalities to enact similar standards and lead to an increase in black-market gambling.
The per-bet tax also remains highly controversial. The Sports Betting Alliance claimed the first-of-its-kind policy led to a 15% year-over-year decline in online wagering during September.
Lawmakers also aren’t sold on the legality of prediction markets. State officials said they “constitute gambling activity under Illinois law” and threatened to pull the licenses of operators and outfits found to support platforms offering these markets.
Notes and quotes
“The Illinois Gaming Board data released (in November) is astounding. ... While legal markets all across the country are growing, the Illinois market is shrinking thanks to the state’s recent tax hike.” - Sports Betting Alliance of Illinois spokeswoman Maura Possley.
“We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state.” - Peter Jackson, Flutter (FanDuel's parent company) CEO.
“A growing body of recent research has identified prohibiting credit usage to fund wagering accounts as a sensible and worthwhile way to encourage responsible sports betting and mitigate the harms of compulsive gambling.” - Illinois Gaming Board in a proposed amendment.
Year in review
Nov. 17, 2025: The Sports Betting Alliance says the state’s per-bet tax led to a drop in 5 million wagers year-over-year during September.
Oct. 17, 2025: Chicago's mayor confirms his plan to add an online sports wagering tax for city-wide online bets.
July 1, 2025: Illinois enacts 25-50 cent per-bet tax, signed by Gov. JB Pritzker (D).
April 21, 2025: The Illinois Gaming Board reports a 53.1% year-over-year February revenue increase thanks to Super Bowl LIX.
April 2, 2025: Illinois sends cease-and-desist orders to prediction platforms Kalshi, Robinhood, and Crypto.com amid their growth in popularity.
