State Representative Edgar Gonzalez Jr has refiled the Internet Gaming Act for the 2026 Illinois legislative session, renewing the decade-long effort to legalise online casino gambling in the state. The new filing largely mirrors the proposal that stalled in the Senate last year and retains the same tax, licensing and regulatory provisions. Supporters argue that the bill could expand regulated online gambling options. Meanwhile, representatives from the retail sector continue to raise concerns about the potential impact on existing gambling markets.
Representative Edgar Gonzalez Jr Reintroduces Illinois Gaming Act in Senate: A Quick Overview
- Illinois State Representative Edgar Gonzalez Jr has refiled House Bill 4797 for the 2026 session, reviving efforts to legalise online casino gaming in the state. The proposal mirrors last year’s stalled bill, retaining the same tax rate, licensing structure, and regulatory framework.
- The bill would allow regulated online slots, table games, poker and live-dealer games under oversight from the Illinois Gaming Board. It includes a 25% tax on adjusted Gross Gaming Revenue (GGR), a three-skin limit per licensee, and several responsible gaming safeguards.
- Despite defined safeguards and workforce protections, the proposal continues to face opposition from retail casinos, labour unions and the video gaming terminal sector. The bill’s progress will depend on whether lawmakers are willing to confront stiff resistance from the retail sector.
Framework of the Proposed Online Gaming Act
House Bill 4797 seeks to authorise regulated online slots, table games, poker and live-dealer casino products throughout Illinois under the oversight of the Illinois Gaming Board. The bill proposes operators be taxed at 25% of adjusted GGR, with all revenue directed into the State Gaming Fund.
It specifies that licensed entities may offer up to three branded “skins” each. Licensing fees under the bill are set at $250,000 (€230,000) initially, €100,000 (€92,000) for renewals, $100,000 (€92,000) for management service provider licences and €75,000 (€69,000) for supplier licences.
The legislation would define internet gaming as online versions or “substantial equivalents” of traditional casino gambling and require operators to verify age, identity and geolocation to ensure players are 21 or older and physically present in Illinois or an approved jurisdiction.
Platforms would be required to include statewide self-exclusion, similar to that in Ontario. Additionally, they must include deposit and spending limits, account security and responsible gaming messages at every login. They would need to include the statement: “If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number)”.
To address concerns about cannibalisation of retail casinos and related jobs, HB 4797 would bar the state from issuing or renewing an online gambling licence to any operator that has reduced its workforce by 25% or more since February 28, 2020. This provision mirrors the previous year’s proposal, which aimed at balancing online expansion with protections for on-site employment.
The bill’s text specifies:
The Board may not issue an Internet gaming licence to an owner’s licensee or organisation licensee that has reduced the size of its workforce by 25 % or more since February 28, 2020.
History of Previous Attempts and Outlook for 2026
Gonzalez’s renewed filing comes after nearly identical legislation failed to advance out of committee during the 2025 session. Opposition during last year’s hearings came from unions and representatives of the retail casino sector, who argued that online gaming would cannibalise revenue and jobs from brick-and-mortar properties.
Stakeholders from the video gaming terminal (VGT) industry, which operates roughly 50,000 terminals across more than 8,700 locations in Illinois, also remain a powerful source of resistance. Supporters, including some casino operators, argue that regulated online gambling could generate significant additional revenue, expanding on Illinois’ already robust sports betting market.
However, opponents maintain that the tax benefit has yet to outweigh the risks to established gaming sectors. During prior hearings, representatives from Penn Entertainment highlighted they had substantial investments in physical casinos in the state, cautioning against changes that could affect their business model.
House Gaming Committee leadership has characterised the concerns as “well-founded”, indicating that legislative resistance persists. Despite the renewed filing, experts note that Illinois has struggled for years to move iGaming bills through the legislative process, with past efforts in 2023 and 2024 also stalling before committee votes.
The bill’s mechanics are now well-defined, but key stakeholders have yet to be convinced that the potential tax revenue justifies the broader impacts on the gaming ecosystem. As a result, the 2026 proposal may follow a similar pattern of introduction, debate and possible bottleneck in the Senate unless lawmakers shift their positions.
The reintroduction of HB 4797 reflects continued legislative persistence on online casino regulation in Illinois. However, it also underscores the enduring challenges and resistance that have characterised the issue for successive sessions. This is hardly an isolated issue, with Mississippi in the midst of a similar crisis.
Lawmakers in Illinois must confront entrenched industry interests and weigh fiscal benefits against potential disruptions to established gaming markets. The outcome of the 2026 session will determine whether the state finally moves toward regulated internet gaming or continues the long history of stalled online casino proposals.