Illinois Gambling Tax Revenue Rises 19% to Record $2,7 Billion

Gambling Revenue Reaches New Record

Illinois generated a record $2.7 billion in state and local tax revenue from gambling during the last fiscal year, according to a report released by the Commission on Government Forecasting and Accountability (COGFA).

The total represents a 19.2% increase over the previous fiscal year and a 90% rise compared with fiscal year 2019, before the state approved a major gambling expansion intended to support its infrastructure investment plan.

The report projects further growth in the coming years, driven by the opening of new permanent casinos, the introduction of additional slot machines in Chicago bars and restaurants, and the continued expansion of sports betting and fantasy sports offerings.

Video Gambling and Sports Betting Lead Growth

For the second consecutive year, video gambling machines surpassed the Illinois Lottery as the state's largest source of wagering revenue. These machines generated more than $1 billion in state and local tax revenue, while lottery revenue remained relatively stable at $788 million.

Sports betting continued to be the fastest-growing segment of the gambling market. More than $15 billion was wagered on sports in 2026, generating $593 million in state tax revenue.

Casino revenue also increased, rising 13% year over year. However, COGFA noted that much of this growth was attributable to the opening of new casinos rather than improved performance at individual properties.

Since lawmakers approved the state's gambling expansion in 2019, the number of authorized casinos has increased from 10 to 17.

Parlay Bets Drive Sports Wagering Losses

Sports betting has grown into a billion-dollar industry in Illinois since legalization six years ago. During the latest reporting period, bettors placed more than 319 million sports wagers, nearly 99% of which were made online.

Parlay bets, which combine multiple outcomes into a single wager, have been a major driver of this growth. These bets offer potentially substantial payouts but require every selected outcome to be correct.

According to the report, Illinois bettors lost more than $875 million on parlay bets alone, accounting for over 60% of total sports betting losses. Players placed these wagers almost 200 million times during the fiscal year, representing approximately three out of every five bets.

Caleb Driker-Ohren, a recovering compulsive gambler, described the appeal of these wagers:

“Especially if you’re at a 16-leg parlay that you might be able to put in $1 and it’ll pay you $100,000,” he said. “All it takes is one team to win a game. Like, how hard is that? Just get another team to win their game and then when it hits, too, it’s a rush.”

Record Tax Revenue Raises Responsible Gambling Concerns

The expansion of gambling has also raised questions about the relationship between public revenue and the social costs of problem gambling.

Adam Hoffer, director of excise tax policy at the Tax Foundation, said gambling taxes can create conflicting incentives for state governments, which benefit financially from wagering while also seeking to limit gambling-related harm.

“This puts the state in a weird position, right?” Hoffer said. “They want to discourage activity on one hand, but it’s their revenue source on the other hand.”

The most recent statewide assessment cited in the report was conducted during the pandemic, before sports betting was fully implemented. It estimated that 383,000 Illinois adults had a gambling problem, while another 761,000 were at risk of developing one.

The findings highlight the challenges facing Illinois as it benefits from record gambling revenues while addressing the risks associated with the continued expansion of regulated wagering.