Illinois has set a new benchmark for gaming tax revenues, pulling in an unprecedented $2.08 billion for fiscal year 2024. This marks a 4.8 percent increase from the $1.99 billion reported the previous year, according to the state legislature's Commission on Government Forecasting and Accountability. Fueled by the continued growth of video gaming, heightened lottery sales, and an expanding sports betting sector, the state's gaming ecosystem has once again proven its economic relevance.
Slot Routes Dominate, Casinos Stumble
Video gaming, known commonly as slot routes, has emerged as the most significant driver of tax revenue. For fiscal year 2024, slot routes contributed $848 million, eclipsing casino tax revenues by a wide margin. Since operations began in 2012, the state has seen video terminals expand from 61 machines to more than 48,000 by mid-2024. Revenue trends suggest slot routes will continue to dominate as the state raises the tax on net terminal income from 34 percent to 35 percent in fiscal year 2025.
Meanwhile, casinos appear to be struggling to keep pace. Despite two new casinos opening during the year, the total tax revenue from state casinos was stagnant at $158 million, nearly identical to the previous year's figure of $157 million. Adjusted gross receipts rose 13.2 percent to $1.61 billion, but this increase has largely been attributed to existing players relocating their business rather than an influx of new gamblers. Of the state's 15 casinos, only Rivers Casino in Des Plaines showed long-term growth in adjusted gross receipts over the past decade.
A Growing Lottery and Expanding Sports Betting
The Illinois State Lottery accounted for the largest share of gaming tax revenue in fiscal year 2024, contributing $886 million. Elevated ticket sales and draw games have kept this sector a reliable moneymaker for the state. Sports betting, though newer to the scene, continues to generate attention and dollars. Tax contributions reached $190 million, up 16 percent year-over-year. Licensing fees added another $30.1 million to the state's coffers.
Illinois' new tiered tax framework for sports betting, introduced in July 2024, could bring substantial changes. Taxation under the previous flat 15 percent rate ended with fiscal year 2024, transitioning to a sliding scale between 20 and 40 percent, depending on adjusted gross revenue levels. Sportsbooks, including DraftKings, have pushed back against the increase, but initial projections suggest that wagering activity will continue its upward trajectory.
Saving on Statewide Slots and Table Games
For players looking to stretch their budgets, Illinois offers various options to maximize gambling value. Promotions tied to online platforms like the Caesars Casino bonus code often provide enticing entry points for new players. These bonus codes, when combined with no-deposit offers or free spins, allow gamblers to engage without immediate financial commitment.
Traditional casinos in Illinois also attract budget-savvy players with discounted loyalty programs and tiered rewards systems. Additionally, video gaming terminals operating throughout the state sometimes promote smaller wagers and multipliers, giving experienced gamblers and newcomers alike opportunities to manage their spending while staying engaged.
The State's Gaming Revenue Future
Across Illinois' gaming sectors, growth trajectories remain uneven. While slot routes and online wagering continue to climb, longstanding industries like horse racing barely register on the state's tax revenue radar anymore, with only $6 million generated in 2024.
Upcoming policy changes and expansions will influence revenue reliability. The Chicago casino project by Bally's, set to open in 2026, adds another layer of competition. Slot routes appear poised to remain the primary revenue engine, leaving the state's casino industry under pressure to innovate or risk further stagnation. Future tax hikes on sports betting and video gaming may provide another test of elasticity in Illinois' burgeoning gambling market.
