- Illinois Governor Pritzker’s FY2027 budget targets casino table games with a new tax structure that could pull in $120 million more per year for the state.
- Iowa’s SF 2289 moves forward, giving state regulators the authority to pursue unlicensed gambling operators for the first time while changing the tax policy.
SPRINGFIELD, Ill. – Two Midwestern states are reshaping their gambling laws this week, each taking a different approach regarding casinos and taxes toward public revenue. Illinois is making the first move with Governor JB Pritzker’s newly introduced $57 billion budget proposal for fiscal year 2027.
The plan would increase taxes on table games at the 15 non-Chicago casinos in the state.
Table games are currently subject to 15% tax on the first $25 million in adjusted gross sales and 20% tax on any additional revenue. Under Pritzker’s plan, that would be replaced with the same progressive schedule that is currently in place for slot machines. It would go through multiple tiers until hitting a 50% ceiling for properties that make more than $200 million.
According to state projections, the revamp would bring in an additional $120 million annually, which would go toward funding the Education Assistance Fund. A progressive sports betting tax up to 40% in 2024 and a per-wager fee that taxed sportsbooks 25 cents per wager in 2025 are just two of the tax increases that legal Illinois casinos have already had to deal with.
Additionally, Pritzker’s budget suggests combining the Illinois Racing Board and the Illinois Gaming Board into a single organization known as the Department of Gaming Regulation and Enforcement. They would be in charge of collecting taxes from horse racing, sports betting, video gaming terminals, and casinos.
Iowa’s Take On Gambling Taxes
In a decisive 44-0 vote this week, the Iowa Senate approved Senate File 2289, a bill that focuses on strengthening state tax withholding on gains from gambling.
This would apply to both sports betting that fulfill federal reporting requirements and slot machine jackpots at legal Iowa casinos for winnings over $1,200.
The Iowa House will now review the legislation in more detail.