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Gambling laws in Illinois are a bit of a mixed bag, with some forms of gambling legal while others are not. The state is well-known for its many riverboat casinos, but relatively recent law changes mean land-based casinos are also in development. Read on to learn more about Illinois gambling laws in our article below.

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Gambling laws in Illinois are covered by Illinois Compiled Statutes sections 720 5/28-1, 230 10/1 and 230 5/1. The general approach to gambling in the state is that activities are deemed illegal unless otherwise specified. The reality is that many forms of gambling are legal in Illinois, but most forms of online gambling, including daily fantasy sports, are not. Let's look at how Illinois gambling laws affect each gambling activity.

Casino Games

Casino gambling is legal in Illinois, but due to the state's original laws on this type of gambling, most casino venues are riverboats. Existing legislation was expanded upon in 2019, which allowed many of these riverboats to 'come ashore' and set up venues on dry land.

The market is, therefore, moving from one consisting solely of 10 riverboats to a more modern setup of one large casino in Chicago and five smaller casinos. Other types of casino-style gaming include games available on the state's licensed Video Game Terminals (VGTs), of which there are some 43,000 across 8,000 locations.

Online casino gambling is illegal in Illinois at present. While other states deem such activities illegal by default without specific legislation, Illinois does mention online gambling in its laws, but only regarding setting up an online gambling business within the state, which it prohibits. No law prohibits Illinois residents from playing online casino slots and other such games, and no one has been prosecuted for doing so.

Poker

Land-based poker is legal in Illinois, with the activity offered in 2 distinct venues: on many riverboats and at charitable gaming locations. There are currently around 14 poker rooms in operation across Illinois.

Online poker gambling is illegal in Illinois, with existing legislation prohibiting the setting up online poker sites. However, this does not specifically mean Illinois residents aren't allowed to play online poker games, with many accessing them via out-of-state sites.

Bingo

Bingo is legal in Illinois, but games can only be run for charitable purposes upon the express permission of the Illinois Department of Revenue under the Bingo License and Tax Act.

Online bingo gambling is illegal in Illinois, with the law prohibiting existing bingo operators from offering their services online. Resident in Illinois wishing to play online bingo games tends not to have too much trouble finding somewhere to play, with plenty of foreign bingo sites accepting players from the state.

Lotteries

Lottery gambling is legal in Illinois, with the state's lottery launched in 1974. Today, the Illinois Lottery offers tickets for popular draw games like the Powerball and Mega Millions lotteries, scratch cards, instant win games and raffle tickets.

Online lottery gambling is legal in Illinois, but only the Illinois Lottery is permitted to sell tickets and games online in the state, in contrast to the situation in numerous other US states. Playing online lottery games for real money at foreign lottery sites is prohibited.

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Social gambling that doesn't involve profit generally doesn't fall under Illinois's scope of gambling laws. Due to the legal definition of gambling in the state, loot boxes are regarded by many as a form of gambling or, at the very least, linked to the development of problematic gambling behaviour. As a result, a bill requiring video games featuring lootboxes to carry a warning label was proposed in February of 2021 but hasn't yet been passed. Skins gambling may be classed as gambling in the state, but there is no prosecution record for participating in such activities.

Cryptocurrencies like Bitcoin are recognized as a form of value in Illinois, though none are classed as legal tender. Proposed law changes mean the state could require greater controls over activities involving cryptocurrencies, but existing laws mean most forms of online gambling are illegal. Residents of Illinois can still access plenty of foreign online crypto casinos that accept players from the state.

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Horse racing betting has been legal in Illinois since the 1920s, but it was only relatively recently that sports betting was legalized in 2019. Now, in addition to horse racing betting at five racetracks and over 35 off-track betting locations, Illinoisans can enjoy traditional sports betting opportunities via numerous land-based sportsbooks. Many of these licensed sportsbooks are also permitted to offer their services online, making online sports betting one of the state's only legal forms of online gambling.

There has been some debate over the legality of daily fantasy sports (DFS) in Illinois. Still, the consensus is that the activity is illegal as the law does not discriminate based on whether a game is one of chance or skill. Top DFS sites like FanDuel and DraftKings continue to offer their services online to Illinois residents.

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The Illinois gambling age is 18 for horse racing betting, bingo and lottery games and 21 for casinos, sports betting and Video Game Terminals (VGTs).

Tax Regulation

Illinois gambling tax regulation sees operators charged varying tax amounts depending on the services offered. Casinos face taxes of between 15% and 50%, depending on their annual gross receipts. However, new charges for Chicago see those rates reaching 74.7% at the top end of the scale. The net income of VGTs is taxed at 34%, sports betting operators pay around 5% tax, and horse racing betting operators pay 1.5% tax. Illinois residents are charged a flat rate income tax of 4.95% on all income, including gambling winnings.

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Gambling laws in Illinois go back to the 1920s when horse racing betting was legalized in the state. The Illinois Lottery was launched in 1974. The Riverboat Gambling Act was passed in 1990, which made casino gambling legal as long as the activities took place on riverboats. Video Game Terminals (VGTs) were permitted to be in licensed premises from 2009. Legislation passed in 2019 made land-based and online sports betting legal in the state and paved the way for the development of several casinos, including a large one in Chicago.

Key Facts

Illinois' gambling laws are a mixed bag, with some forms of gambling legalized but others not. Here are the key points regarding gambling regulations in Illinois:

• Casino gambling is legal in Illinois, with most activities taking place on riverboats, but several land-based casinos are in the process of being built.
• Online casino gambling is illegal.
• Poker gambling is legal in Illinois, with games offered at casinos and charitable venues.
• Online poker gambling is illegal.
• Bingo gambling is legal, but charitable organizations can only offer games.
• Online bingo gambling is illegal.
• Online and offline lottery gambling is legal, but only via the Illinois Lottery.
• Both online and offline sports betting is legal in Illinois.
• Daily fantasy sports betting is unregulated but available.