Gambling Laws in Illinois

Gambling laws in Illinois are a bit of a mixed bag, with some types being legal and others not. The state is well-known for its riverboat casinos, but recent law changes mean land-based casinos are also in development.

Which Type of Gambling Is Legal in Illinois?

Gambling laws are covered by the Illinois Compiled Statutes sections 720 5/28-1, 230 10/1 and 230 5/1. The general approach 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 are not. 

Casino Slots, Table and Online Games

Casino gambling is legal in Illinois, but due to original laws, most casino venues are riverboats. However an update to legislation in 2019 meant that many of these riverboats were permitted to 'come ashore' and set up venues on dry land. 

The market is moving from 10 riverboats to a more modern setup of one large casino in Chicago and five smaller establishments. Other types of casino-style gaming include those available on the state's licensed Video Game Terminals (VGTs). There are currently 43,000 of these spread across 8,000 locations.

Online casino gambling is illegal in Illinois at present. While other states deem this illegal by default without specific legislation, Illinois does mention online gambling in its laws. This regards the setting up of an online gambling business within the state though, which it prohibits.

If residents are looking to get to grips with out-of-state popular online casinos, then they can. There isn't a law which specifically bans this, and no one has been prosecuted for doing so.

Online and Land-Based Poker

Land-based poker is offered in 2 venues: on the 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 of online poker sites. This means that many residents head to the online live casino platforms to get their fix instead. Whilst it might be deemed illegal, no one has ever been prosecuted for doing so.

Gambling on Bingo

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

Just like the other forms of online gambling that I've mentioned, there isn't any specific legislation regarding bingo. Only that online gambling sites cannot set up business in the state. There are plenty of foreign sites which accept players from Illinois though.

Purchasing Lotto Tickets in Illinois

The Illinois state lottery was launched in 1974 and offers residents the chance to take part in games such as Powerball and Mega Millions. Lotto outlets also offer scratchcards, instant win games and raffle tickets.

The state website allows players to purchase tickets and play other online games. This is a very different outlook to many state lotteries throughout the US that place a blanket ban on the activity.

The law currently bans any new online casino from setting up business in Illinois and offering lotto gambling. Playing at foreign sites is also strictly prohibited.

Gambling at Home and Online Crypto Casinos

Social gambling that doesn't involve profit doesn't fall under Illinois's current laws so it's acceptable to host card games at private residencies.

Due to the legal definition of gambling in the state, loot boxes are regarded as a form of gambling and linked to the development of problematic behaviour. As a result, a bill was proposed in 2021 to require such video games to carry a warning label. This 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 are recognised as a form of value in Illinois, though none are classed as legal tender yet. Proposed law changes mean that the state could require greater control over activities involving these in the future. But at the moment online crypto casinos are not permitted, though many do accept players in Illinois.

Is Sports Betting Permitted in Illinois?

Betting on horse racing has been legal since the 1920s, but it was only in 2019 that sports betting in general was legalised. Many of the state's licensed sportsbooks are permitted to offer their services online. Which makes online sports betting one of Illinois' only legal forms of online gambling.

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

Minimum Legal Age to Gamble

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

Gambling Tax Regulations

Operators are charged varying amounts depending on the services they offer. Casinos face taxes of between 15% and 50%, depending on their annual gross receipts. However, new charges for Chicago will see those rates reaching up to 74.7%.

The net income of VGTs is taxed at 34%, sports betting operators pay around 5% and horse race betting operators pay a 1.5% tax.

Illinois residents are charged a flat rate income tax of 4.95% on all income, including gambling winnings.

History of Gambling Laws in Illinois

These began in the 1920s when horse race betting was legalised in the state and the Illinois Lottery was then 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. Whilst Video Game Terminals (VGTs) were permitted to be in licensed premises from 2009.

Legislation passed in 2019 which made land-based and online sports betting legal. This then paved the way for the development of several casinos.

Key Facts

• Casino gambling is legal in Illinois. Most activities take place on riverboats, but several land-based casinos are in the process of being built.

• Online casino gambling is illegal.

• Poker gambling is legal with games offered at casinos and charitable venues.

• Online poker gambling is illegal.

• Bingo gambling is legal, but charitable organisations can only offer games.

• Online bingo gambling is illegal.

• Online and offline lottery gambling is legal, but only via the Illinois State Lottery.

• Both online and offline sports betting is legal.

• Daily fantasy sports betting is unregulated but remains available.