Gambling is legal in Illinois in several regulated forms: casino gaming, video gaming terminals in licensed establishments, sports betting (in person and through mobile apps), pari-mutuel horse racing, and the state lottery.1Illinois Gaming Board. About the Illinois Gaming Board Online casino games and online poker are not legal. Anything outside the licensed system is a crime, and every dollar you win — legal or not — is taxable.
What Forms of Gambling Are Legal
Illinois legalized riverboat gambling in February 1990, becoming only the second state to do so, and the first casino opened in Alton in September 1991.1Illinois Gaming Board. About the Illinois Gaming Board The state now has 17 casinos and nearly 9,000 licensed video gaming locations.2Illinois Gaming Board. Illinois Gaming Board The Illinois Gambling Act authorizes both riverboat and land-based casinos offering slot machines, table games, and other electronic gaming.3Illinois General Assembly. Illinois Code 230 ILCS 10 – Illinois Gambling Act
Video Gaming Terminals
Video gaming terminals are the most widespread legal gambling in the state. You’ll find them in bars, restaurants, truck stops, fraternal organizations, and veterans halls. Under the Video Gaming Act, most licensed establishments that serve alcohol may operate up to six terminals on-site, and large truck stops meeting higher fuel-sale thresholds may operate up to ten.4Illinois General Assembly. Illinois Code 230 ILCS 40 – Video Gaming Act
Sports Betting
Sports betting became legal on June 28, 2019, when Governor Pritzker signed the Sports Wagering Act.5Illinois General Assembly. Illinois Code 230 ILCS 45 – Sports Wagering Act The law allows in-person and online wagering on professional and collegiate events through licensed sportsbooks. Anyone physically located in Illinois can place bets through mobile apps or websites, which is where the vast majority of wagers happen.
Horse Racing
Pari-mutuel wagering on live and simulcast races has been regulated since 1975 under the Illinois Horse Racing Act, with the Illinois Racing Board overseeing licensed tracks and participants.6Illinois General Assembly. Illinois Code 230 ILCS 5 – Illinois Horse Racing Act of 1975
Lottery
The Illinois Lottery operates under the Illinois Lottery Law, administered by the Department of the Lottery through a private management agreement.7Illinois General Assembly. Illinois Code 20 ILCS 1605 – Illinois Lottery Law Proceeds fund public education and capital projects. The lottery also sells some tickets online.
What Isn’t Legal
Illinois has not legalized online casino games or online poker. Multiple legislative attempts over the past decade have stalled, with the most recent effort failing to advance in 2023. The only online wagering currently authorized is sports betting through licensed mobile apps and websites, plus certain lottery ticket sales.5Illinois General Assembly. Illinois Code 230 ILCS 45 – Sports Wagering Act
Offshore casino sites and unlicensed poker apps that accept Illinois players fall outside the state’s licensing system. Playing on them is not a legal gray area — it’s the kind of activity the gambling statute reaches.
Age Requirements
You must be at least 21 to enter the gaming floor of an Illinois casino, play a video gaming terminal, or place a sports bet. Lottery tickets and horse racing wagers have a lower threshold of 18.
Penalties for Illegal Gambling
Illinois treats most gambling offenses as misdemeanors, but the jump to felony territory for anyone running an operation is steep.
State Penalties
A first-time gambling offense is a Class A misdemeanor, carrying up to one year in jail and a fine of up to $2,500.8Illinois General Assembly. Illinois Compiled Statutes 720 ILCS 5/28-1 – Gambling9Illinois General Assembly. Illinois Compiled Statutes 730 ILCS 5/5-4.5-55 – Class A Misdemeanor The offense covers a wide range of conduct, from placing an illegal wager to operating gambling devices or running an unlicensed internet gambling site.
A second or subsequent conviction for operating, manufacturing, distributing, or profiting from gambling equipment or operations jumps to a Class 4 felony, which means one to three years in prison.8Illinois General Assembly. Illinois Compiled Statutes 720 ILCS 5/28-1 – Gambling10Illinois General Assembly. Illinois Compiled Statutes 730 ILCS 5/5-4.5-45 – Class 4 Felony Simple bettors who get a second conviction stay at the misdemeanor level; the felony escalation applies specifically to the operational side of gambling.
A separate statute targets anyone who knowingly lets their property be used for illegal gambling. That offense is also a Class A misdemeanor on the first conviction and a Class 4 felony on any subsequent one.11Illinois General Assembly. Illinois Compiled Statutes 720 ILCS 5/28-3 – Keeping a Gambling Place
Federal Exposure
An illegal gambling operation can also trigger federal prosecution under 18 U.S.C. § 1955 if it violates state law, involves five or more people who run or finance the business, and has been operating for more than 30 consecutive days or grosses at least $2,000 in a single day.12Office of the Law Revision Counsel. 18 U.S. Code 1955 – Prohibition of Illegal Gambling Businesses A federal conviction carries up to five years in prison. Federal authorities tend to pursue this statute against organized operations rather than small games, but the threshold for what counts as a “business” is lower than most people expect.
Taxes on Winnings
Every dollar you win gambling is taxable income, whether or not the payer hands you a tax form. Smaller wins that don’t trigger automatic reporting still have to be reported on your return.
Federal
Starting in 2026, casinos and other payers must issue a Form W-2G when certain gambling winnings reach $2,000, up from the previous thresholds that varied by game type. That threshold will be adjusted annually for inflation. Regardless of whether you receive a W-2G, you are required to report all gambling winnings as income on your federal return. Federal withholding of 24% applies to winnings that meet reporting thresholds, and the rate is the same for international visitors. You can deduct gambling losses up to the amount of your winnings, but only if you itemize.
Illinois
Illinois taxes gambling winnings at its flat income tax rate of 4.95%. Payers must withhold Illinois income tax from lottery winnings of $1,000 or more per payment.13Illinois Department of Revenue. Withholding Illinois Income Tax for Lottery or Gambling Winnings Casino and sports betting winnings may also be subject to withholding depending on the amount.
Self-Exclusion
Illinois runs a voluntary self-exclusion program that lets anyone ban themselves from casinos, video gaming locations, and sports betting platforms. The Illinois Gaming Board administers the program, and once you’re enrolled, licensed operators are required to deny you entry or close your accounts.1Illinois Gaming Board. About the Illinois Gaming Board The Sports Wagering Act requires self-exclusion for sports betting to be integrated into that same program.5Illinois General Assembly. Illinois Code 230 ILCS 45 – Sports Wagering Act Recent amendments to the Illinois Gambling Act have also expanded funding for gambling addiction treatment and imposed advertising rules aimed at protecting vulnerable populations.