How Illinois generated $2 billion in tax revenue from gamblers in the last fiscal year

Rivers Casino officials reported a 5.5% decline in adjusted gross revenues in 2024 from 2023. That translated to about $9 million less in tax revenue to the state this year from the Des Plaines gambling spot.
Daily Herald file photo/July 2011

Gamblers in Illinois added more than $2 billion in tax revenue to the state’s coffers during the last fiscal year.

The most recent “Wagering in Illinois” update from the Illinois legislature’s Commission on Government Forecasting and Accountability also shows gambling tax revenue crossed the $2 billion threshold for the first time in 2024.

The $96 million increase in gambling tax revenue from the previous year represents a 4.8% spike, according to the report. The state’s fiscal year ended in June.

“The most significant increases have come from the video (gambling) and sports wagering industries,” the COGFA report reads. “Other new projects are expected to expand gaming further including the development of three permanent casinos in Illinois, one of which is to be a 4,000-position Chicago casino.”

Taxes from sports betting increased from $143 million in 2023 to $190 million in 2024, a 32.9% bump. The state increased the tax rate on sportsbooks, which went into effect for the current fiscal year. Those changes are estimated to increase tax revenues by another $200 million a year.

Video gambling tax revenue grew by nearly 4.2% in 2024, according to the report. One of the state’s top gambling tax generators, video gambling netted $848 million for the state this year, compared to $814 million in 2023.

With more than 48,000 video gambling terminals operational statewide now, the devices also generated about $147 million in tax revenue for local governments, the COGFA report shows.

Video gambling generated $848 million in tax revenue for the state in fiscal year 2024, as well as $147 million more split among local governments.
Daily Herald File Photo

However, proponents of video gambling are concerned about new technology that would allow bettors to use their phones or tablets to gamble online and bypass the terminals. They are pushing back against any potential legislation to allow this additional form of gambling.

“There’s a saturation worry,” said Keith Wetherell, executive director of the Illinois Licensed Beverage Association. “Video gambling allows our members to offset their expenses and employ robust staff. Some of our members say they wouldn’t be open if it weren’t for video gaming.”

But the proliferation of video gambling has had the kind of effect on casinos that Wetherell worries about.

Gambling tax revenue from casinos was largely stagnant in 2024, generating just $158 million for the state, only a small uptick from $157 in gambling taxes the state received from casinos in 2023.

That’s despite the addition of new casinos, including a much ballyhooed temporary site in Chicago that generated $12.3 million for the state, but seemingly cut into revenues from Rivers Casino in Des Plaines.

Rivers officials reported a 5.5% decline in adjusted gross revenues in 2024 from 2023. That translated to about $9 million less in tax revenue to the state this year. COGFA officials also noted the state’s complicated tax structure imposed on casinos resulted in fewer tax dollars making their way to the state in 2024.

“The overall value of tax revenue growth from the remaining gaming expansion will likely be modest at best when accounting for the cannibalization on existing gaming options and the adverse effect of the modified tax structure on revenues,” the report stated.

The majority of gambling tax revenue in Illinois continues to come from the lottery, though. In 2024, the lottery generated $886 million in taxes for the state, or 42.4% of the state’s total gambling tax haul.

Tax revenue from lottery sales increased 1.6% from 2023.

Instant games make up 56% of lottery sales, compared to drawings such as Powerball, Mega Millions and the array of state-lottery drawing offerings. More than $3.8 billion was spent on lottery tickets in Illinois in 2024.

The state also received $6 million in tax revenue from horse racing, the COGFA report shows. Tax revenues from horse racing have hovered in this range for about two decades.

2024 gambling gfx (2).pdf