Illinois Gambling Tax Revenue Exceeds $2 Billion in 2024
December 11, 2024 Marija D
Illinois gamblers contributed over $2 billion in tax revenue to state coffers during the last fiscal year, marking a milestone in the state’s gambling industry. This achievement, highlighted in the Illinois legislature’s Commission on Government Forecasting and ability (COGFA) report titled “Wagering in Illinois,” reflects a $96 million increase from the prior year—a 4.8% growth.
The state’s fiscal year concluded in June, and the report emphasizes that much of the revenue boost originated from video gambling and sports betting. These two sectors are poised for further growth as Illinois continues to expand its gambling infrastructure, including plans for three new casinos, one of which will house a 4,000-position gaming facility in Chicago.
Sports Betting and Video Gambling Propel Revenue
Tax revenue from sports betting in Illinois surged by 32.9%, jumping from $143 million in 2023 to $190 million in 2024. This increase coincided with an elevated tax rate on sportsbooks implemented for the current fiscal year, which is expected to generate an additional $200 million annually.
Video gambling, one of the state’s top revenue generators, also saw notable growth. Revenue from video gambling taxes reached $848 million in 2024, up from $814 million the previous year—a 4.2% increase. The state now boasts over 48,000 operational video gambling terminals, which not only contributed significantly to state funds but also provided $147 million in tax revenue to local governments.
Despite these gains, stakeholders in the video gambling industry have voiced concerns over the potential impact of video gambling terminals. “Video gambling allows our to offset their expenses and employ robust staff,” Wetherell noted. “Some of our say they wouldn’t be open if it weren’t for video gaming.”
While video gambling and sports betting have made impressive contributions, the Illinois Lottery remains the state’s leading source of gambling tax revenue. In 2024, lottery taxes generated $886 million, ing for 42.4% of the total gambling tax revenue.
Lottery ticket sales climbed slightly, with tax revenue increasing 1.6% from 2023. Instant games continue to dominate the lottery market, comprising 56% of total sales. Overall, Illinois residents spent over $3.8 billion on lottery tickets in 2024, underscoring the enduring popularity of this form of gambling.
Casino and Horse Racing Revenues Face Challenges
In contrast to the upward trends in sports betting and video gambling, casino tax revenue remained relatively flat. Illinois casinos contributed $158 million in taxes in 2024, a marginal increase from $157 million in 2023. The opening of a temporary casino in Chicago generated $12.3 million in tax revenue but appeared to detract from earnings at other locations. Rivers Casino in Des Plaines, for instance, reported a 5.5% decline in adjusted gross revenues, amounting to a $9 million drop in state tax contributions.
COGFA officials highlighted the impact of Illinois’ complex casino tax structure, which has dampened the potential for revenue growth. “The overall value of tax revenue growth from the remaining gaming expansion will likely be modest at best when ing for the cannibalization on existing gaming options and the adverse effect of the modified tax structure on revenues,” the report stated.
Horse racing, while a smaller contributor, maintained consistent performance, generating $6 million in tax revenue—a figure that has remained relatively stable over the past two decades.
Source:
„How Illinois generated $2 billion in tax revenue from gamblers in the last fiscal year”, dailyherald.com, December 7, 2024.
Even with all the buzz around sports betting and video gambling, it’s surprising that the lottery still contributes the largest share of revenue. It shows how traditional forms of gambling continue to dominate.