Illinois Targets Casino Table Games with Steep Tax Hike Proposal

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Illinois Governor J.B. Pritzker’s fiscal 2027 budget reopens debate over how casinos contribute to state coffers by proposing a change in how table games are taxed.

Chicago Flag, as Illinois taxes table games

Key Takeaways:

  • Pritzker’s fiscal 2027 budget aims to raise $589 million through increased casino taxes.
  • Proposed shift to tiered tax rates could triple the top rate for large venues.
  • Centralized gaming oversight signals a strategic move amid political scrutiny.

This will be under the same graduated scale now applied to slot machines, potentially raising the top rate from 20% to 50% for the largest properties. 

According to Yogonet, the $57 billion plan targets $589 million in new revenue, with roughly $120 million expected from changes to taxation of table games and electronic devices. This is a shift the administration frames as closing a longstanding disparity between gaming formats. 

The move would not affect Chicago’s casino, which is taxed under a separate regime, per SBC Americas.

Under the proposal, table games outside Chicago would be taxed at the same tiered rates that currently apply to slots, beginning at 15% on the first $25 million and escalating through bands that top out at 50% on revenue above $200 million, increasing the state’s take from high-performing venues. 

The proposal follows heightened fiscal pressure on Illinois gaming operators more broadly. Last year, sportsbooks were hit with a late-stage per-wager fee that significantly altered operator cost structures.

Higher Table Games Taxes Raise Competitive Concerns

Industry groups warn that higher rates could alter capital spending, promotions and hiring, and complicate competition with neighboring states. 

The budget also proposes consolidating the Illinois Gaming Board and the Illinois Racing Board into a new Department of Gaming Regulation and Enforcement to centralize oversight and tax collection across casinos, sports betting, video gaming and racing. 

The governor’s office has linked some of the anticipated revenue to the Education Assistance Fund.