Illinois Gambling Tax Collections Climb to Record $2.7 Billion in Recent Fiscal Cycle

Illinois pulled in a record $2.7 billion in gambling-related tax revenue during the fiscal year that ran from July 2025 through June 2026, and that total represents a 19.2 percent jump from the prior year while marking roughly a 90 percent increase since fiscal 2019, according to figures compiled in the annual wagering report. The growth came from multiple sectors operating under state oversight, with video gambling terminals emerging as the leading contributor, followed closely by casinos, sports wagering activity that included parlay bets, and traditional lottery sales.

Key Drivers Behind the Revenue Increase

Data from state regulators shows video gambling terminals now generate the largest share of tax receipts among all gambling categories, and those machines continue to expand across bars, restaurants, and truck stops throughout the state. Casinos added steady contributions through table games and slot floors, while sports wagering saw notable spikes from parlay betting options that combine multiple game outcomes into single wagers. The lottery maintained consistent performance with ticket sales and draw games that feed directly into tax collections.

Those who've tracked the industry note that expanded offerings at existing facilities played a significant role, and new casino developments approved in prior years began contributing additional revenue streams during this period. Projections included in the annual wagering report point to further gains once additional casino properties open and current operators roll out more betting formats.

Breakdown of Revenue Sources

Video gambling terminals accounted for the biggest portion of the $2.7 billion total, with tax payments rising as the number of machines and locations increased across Illinois communities. Casinos followed as the second-largest source, benefiting from both in-person play and any linked online or mobile components allowed under current regulations. Sports wagering generated strong returns particularly through parlay bets, which carry higher margins and appeal to a broad range of participants, while the lottery delivered reliable income through its established network of retailers and online ticket options.

Each category operated under oversight from the Illinois Gaming Board and the state lottery division, with tax rates structured to capture a percentage of handle or gross receipts depending on the product. The combined effect pushed overall collections past previous benchmarks and created a new high-water mark for the fiscal year ending in June 2026.

Historical Growth Since 2019

Revenue has climbed substantially since fiscal 2019, when collections sat at lower levels before the expansion of video terminals and the legalization of sports wagering took full effect. The nearly 90 percent rise reflects both organic growth in existing categories and the addition of new betting formats that drew increased participation over time. State officials compiled these numbers through regular reporting from operators, and the annual wagering report aggregates data from the Illinois Gaming Board along with lottery figures to present a complete picture.

Observers note that the pace of growth accelerated in recent years as more locations added terminals and sportsbooks became available both at retail sites and through mobile platforms. This steady upward trajectory continued into the most recent fiscal period, culminating in the $2.7 billion figure reported for July 2025 through June 2026.

Current Context and Future Outlook

As of October 2026, state agencies continue to monitor collections while preparing for additional revenue from facilities still under construction or in early operations. The annual wagering report highlights expectations for continued increases tied to these new venues and any expanded product offerings approved by regulators. Data indicates that sports wagering, in particular, may see further gains as operators introduce more parlay and same-game betting options that have already proven popular.

Video gambling terminals remain positioned as the dominant revenue driver, with potential for additional machines to come online in the months ahead. Lottery sales, meanwhile, benefit from ongoing marketing and new game launches that keep participation steady. Together these elements form the foundation for projected growth beyond the record set in the most recent fiscal year.

Conclusion

The $2.7 billion in gambling tax revenue collected by Illinois for fiscal year 2025-2026 stands as the highest total recorded to date, driven by contributions from video gambling terminals, casinos, sports wagering, and the lottery. The 19.2 percent year-over-year increase and the roughly 90 percent rise since fiscal 2019 reflect expanded operations and shifting player preferences across these categories. Projections in the annual wagering report suggest additional gains as new casinos open and existing offerings expand, providing a clear trajectory for future collections under current regulatory frameworks.