Illinois Gambling Tax Revenue Reaches Record $2.7 Billion for Fiscal Year 2026

Illinois collected a record $2.7 billion in gambling-related tax revenue during the fiscal year spanning July 2025 through June 2026, according to figures compiled in the state's annual wagering report, and this total reflects a 19.2 percent increase from the prior year along with an approximate 90 percent rise since fiscal 2019.

The revenue stream draws from casinos, sports wagering, video gaming terminals, and the state lottery, while the report breaks down performance across each category and highlights shifts in which sources contribute the largest shares. Video gambling terminals have now moved ahead of the lottery as the leading revenue generator, and sports betting has posted particularly strong results driven by parlay wagers. The annual wagering report projects continued growth as additional casinos and expanded offerings reach full operation in the months ahead, including developments scheduled around October 2026.

Breakdown of Revenue Sources

Data from the report shows video gaming terminals delivered the largest single portion of the tax collections, surpassing the lottery for the first time in recent years, and this shift occurred because terminal placements expanded across more locations while play volumes remained steady. Sports wagering contributed the next largest segment, with parlay bets accounting for a disproportionate share of teh handle and generating elevated tax receipts compared with straight wagers. Casino table games and slot machines added their traditional share, yet their relative weight within the overall total declined slightly as newer categories gained ground.

Lottery sales continued to provide a stable base, although the category no longer leads the pack, and state officials have noted that the combined effect of all four segments produced the record aggregate figure. The report compiles these numbers from operator filings submitted to the Illinois Gaming Board and the Department of Revenue, then presents them to the General Assembly for review each fall.

Year-Over-Year and Multi-Year Growth Trends

The 19.2 percent year-over-year jump represents one of the steeper single-year increases recorded since sports betting legalization, and the roughly 90 percent cumulative rise since fiscal 2019 illustrates how the market has expanded after the introduction of new product types. Growth accelerated most noticeably after video gaming terminal caps were lifted and after mobile sports betting launched statewide, both of which broadened participation without requiring new physical infrastructure in every case.

Those who've studied the Illinois market observe that the combination of expanded access and product variety created compounding effects, because each new category draws from overlapping but distinct player bases. The annual wagering report includes tables that track these trends back to fiscal 2019, allowing direct comparison of tax receipts by segment across the entire period.

Role of Sports Betting and Parlays

Sports betting revenue grew at a faster clip than any other segment during the most recent fiscal year, and the report attributes much of that performance to parlay wagering, which carries higher hold percentages and therefore produces more tax per dollar wagered. Mobile apps now account for the majority of sports betting volume in Illinois, reducing friction for casual participants and enabling frequent smaller wagers that accumulate into meaningful totals.

Operators reported that certain high-profile events, including major league playoffs and college tournaments, drove temporary spikes in handle, yet baseline volumes remained elevated throughout the year. The annual wagering report notes that tax rates on sports betting remain lower than those applied to casino games or terminals, which means the category contributes a smaller percentage of total tax despite its large handle.

Future Projections and Infrastructure Changes

The report forecasts additional revenue increases once new casino properties adn terminal expansions come online, with several projects slated for completion or partial opening around October 2026. These developments include both new facility construction and the addition of gaming floors at existing venues, each of which will increase the total number of devices and table games available to the public.

State analysts have modeled multiple scenarios based on different rates of player adoption at the new locations, and the baseline projection assumes steady rather than explosive growth. Because the tax structure already captures revenue from both land-based and mobile channels, incremental supply is expected to translate directly into higher collections without requiring legislative changes.

Conclusion

The $2.7 billion total for fiscal year 2026 marks the highest gambling tax revenue Illinois has ever recorded, and the annual wagering report supplies the detailed segment data that explains how video terminals overtook the lottery while sports betting continued its rapid climb. Further gains are projected as new capacity enters the market in late 2026, keeping the trajectory upward in the near term. The figures remain available through the official report submitted to the Illinois General Assembly for ongoing reference.