08/17/2025
Illinois officially legalized sports betting in June 2019 through the passage of the Sports Wagering Act. The legislation permitted both retail and online sportsbooks to operate within the state, under the oversight of the Illinois Gaming Board (IGB). The Act allows licensed casinos, racetracks, and sports facilities to offer sports betting, and also grants permits to online operators partnered with land-based establishments. Since its implementation, Illinois has grown into one of the largest sports betting markets in the United States, generating significant tax revenue for state programs.
Sports betting operators in Illinois must obtain a license from the IGB, which requires meeting strict compliance, financial, and operational standards. The law allows three types of licenses: Master Sports Wagering License, Management Services Provider License, and Supplier License. Prominent operators in Illinois include DraftKings, FanDuel, BetRivers, Caesars Sportsbook, PointsBet, and BetMGM. Each operator must partner with an existing land-based facility unless applying for one of the limited standalone mobile licenses, which are subject to higher fees and delayed issuance.
Online and mobile betting play a major role in Illinois’ sports betting market. Initially, the law required in-person registration for online accounts, but during the COVID-19 pandemic, this requirement was temporarily suspended, leading to rapid growth in user sign-ups. In March 2022, Illinois officially removed the in-person registration mandate, allowing players to register entirely online. The state imposes strict geolocation requirements, meaning wagers must be placed within Illinois borders. Age verification processes ensure that all bettors are at least 21 years old.
Illinois sportsbooks offer a wide variety of betting markets, including moneylines, point spreads, totals (over/under), parlays, teasers, futures, and proposition bets. However, there are certain restrictions: betting on Illinois college teams is prohibited unless done in person at a retail sportsbook, and even then, player prop bets are not allowed. These rules aim to protect the integrity of collegiate sports and reduce potential conflicts of interest.
Illinois applies a tax rate of 15% on adjusted gross sports wagering revenue. These funds are directed primarily to the state’s Capital Projects Fund, which supports infrastructure improvements. Given Illinois’ large population and proximity to major sports cities like Chicago, the sports betting market consistently generates hundreds of millions in monthly handle, making it a major contributor to state revenue.
The state enforces robust responsible gambling measures, including self-exclusion programs, mandatory display of helpline numbers, and operator-funded problem gambling initiatives. The IGB also conducts public awareness campaigns to promote safe and responsible betting behavior. Licensed operators are required to implement features such as deposit limits, time limits, and self-suspension tools for players.
The Illinois sports betting market is expected to continue expanding as more operators enter the space, new technology enhances the betting experience, and potential adjustments to wagering restrictions are considered. Legislative discussions periodically explore the possibility of allowing full betting on in-state college teams and expanding the range of permissible wager types. With its strong sports culture and regulatory framework, Illinois is positioned to remain a top-tier U.S. sports betting jurisdiction.
The continued growth of Illinois’ sportsbooks reflects a well-regulated, high-demand market that balances economic opportunity with responsible gambling safeguards.