Illinois Lawmakers Push Online Casino Bill HB 4797

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Feb 04, 2026, 7:00 am ET

Read Time: 3 minutes

Illinois Lawmakers Push Online Casino Bill HB 4797

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Illinois lawmakers are once again pushing to legalize online casinos, introducing House Bill 4797 (HB 4797) in the state House. The proposal renews efforts to expand Illinois gambling through regulated iGaming.

Lawmakers argue the bill could unlock new revenue without raising taxes. Meanwhile, supporters say consumer demand already exists through unregulated platforms. As a result, the debate around US online casinos has returned to Springfield.

Illinois already operates a mature land-based casino and sportsbook market. However, online casino games remain illegal statewide. 

HB 4797 aims to change that by creating a regulated framework. Supporters believe regulation would strengthen consumer protections and modernize Illinois gambling laws.

What Does HB 4797 Propose for Online Casino Gaming?

HB 4797, titled the Internet Gaming Act, would authorize full-scale online casino gaming in Illinois. The bill allows regulated operators to offer online slots, table games, live dealer games, and online poker. These offerings would mirror games already available at physical casinos.

The legislation grants oversight authority to the Illinois Gaming Board. Under the proposal, the IGB could issue licenses to approved operators. Each license would permit up to three individually branded online platforms, commonly called skins. This structure mirrors existing sportsbook licensing models.

Financially, HB 4797 outlines a clear tax and fee system. Operators would pay a 25% tax on gross gaming revenue. An initial license would cost $250,000. Annual renewals would require an additional $100,000 payment.

Additionally, the bill also defines how tax revenue would be distributed. Ninety-five percent would flow into the state's general fund. The remaining five percent would be shared among local municipalities and counties. Lawmakers say this structure balances statewide priorities with local benefits.

Addressing Cannibalization and Workforce Concerns

HB 4797 directly addresses concerns about iGaming harming physical casinos. Critics often argue online play could reduce in-person visits and jobs. To counter this, the bill includes a workforce protection clause.

According to HB 4797, the IGB would be prohibited from issuing or renewing licenses to any company that has reduced its Illinois workforce by 25% or more since February 28, 2020. This is intended to ensure that operators maintain their physical presence and jobs in the state.

Supporters believe this safeguard protects casino employees while allowing digital expansion. They argue online platforms can complement physical properties rather than replace them.

Regulatory Standards and Consumer Protections

The bill imposes several regulatory requirements if passed. Players must be at least 21 years old to participate. Operators must implement self-exclusion tools and deposit or wagering limits. These measures align with responsible gambling standards.

HB 4797 also blocks local governments from imposing separate online casino taxes. This includes Chicago. Lawmakers aim to avoid legal conflicts like those surrounding proposed sports betting taxes.

Additionally, the bill allows Illinois to join multi-state online poker agreements. Shared player pools could improve liquidity and game availability.

Illinois' Long History With iGaming Proposals

Illinois lawmakers have debated online casinos for several years. Representative Edgar Gonzalez has repeatedly sponsored iGaming legislation. However, past proposals failed to advance beyond committee hearings.

Momentum may be different this time. Attorney General Kwame Raoul has voiced support for exploring iGaming. The state continues searching for new revenue streams amid budget pressures.

If HB 4797 passes, Illinois gambling would enter a new digital phase. Regulated US online casinos could operate statewide. Lawmakers believe the move could generate millions in annual revenue while strengthening consumer protections.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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