Betting in Illinois

Illinois isn’t a “mid-tier” market anymore - it’s a heavyweight. In 2024, bettors in the state wagered just over $14 billion on sports, making Illinois the second-largest sports betting market in the country by annual handle, behind only New York.

Monthly numbers back that up: Illinois has routinely cleared $1 billion+ in handle per month, with peak months hitting around $1.5 billion during the 2024 NFL season. For players, that means you’re in a mature, liquid market where lines are sharp, menus are deep, and operators can’t afford to be lazy.

For a while, Illinois ran a flat 15% tax on adjusted gross revenue, which was pretty middle-of-the-pack. That changed in 2024, when lawmakers approved the first progressive sportsbook tax in the U.S., scaling operator taxes from 20% up to 40% depending on revenue.

Then they went further. As of July 1, 2025, Illinois also charges a per-wager tax on every online bet - $0.25 per bet up to 20 million bets, and $0.50 per bet after that. That combination makes Illinois one of the most heavily taxed sports betting jurisdictions in the country.

Practically speaking, high tax pressure tends to show up as worse promos, occasional surcharges (FanDuel already tested that), and less aggressive pricing over time.

Illinois is extremely restrictive on college betting when it comes to in-state programs. As of July 1, 2024, you cannot bet on any Illinois-based college team - not online, not in person, not even for March Madness.

You can still bet on out-of-state college teams and major NCAA events, but if you’re trying to wager on Illinois, Northwestern, DePaul, NIU, etc., you’re out of luck.

Daily fantasy sports in Illinois sits in a weird spot: it’s legal, but not formally regulated. In 2020, the Illinois Supreme Court ruled in Dew-Becker v. Wu that DFS contests are games of skill rather than illegal gambling, effectively allowing DFS operators to continue without being licensed under the Sports Wagering Act.

Since then, the state has shifted its attention to Pick ’Em-style products. In 2024–2025, regulators targeted operators like PrizePicks and similar platforms, arguing that their prop-card formats function too much like sports betting. The result: traditional DFS remains available, but pick’em-style contests are under heavy pressure and are in danger of being pushed out of the state via legislation in the future.

On paper, Illinois looks like a prime iGaming candidate: big population, strong retail casino base, and a mature betting market.

In reality, online casino legislation keeps stalling out. Companion iGaming bills have been filed multiple times in recent sessions, including renewed pushes in 2024 and 2025 - but none have made it out of committee. Retail casino concerns (cannibalization, revenue split, control) have been a major drag, and opposition remains strong.

Until lawmakers break the deadlock, the only legal online casino alternative available to IL players is sweepstakes/social casinos, which offer casino-style games using virtual currencies that can be redeemed for prizes.

Sweepstakes casinos and social sportsbooks operate legally in Illinois under federal sweepstakes law, offering casino-style games or sports pick formats using virtual currencies rather than cash. One currency is used purely for entertainment, while the “Sweeps” currency can be redeemed for real cash prizes.

For bettors, this means two things:

• You aren’t limited to the state’s licensed sportsbook apps - social sportsbooks give you alternative ways to make picks, compete, and earn rewards without touching the regulated betting system.
• You have a legal workaround for online casino gaming, since sweepstakes casinos offer slots, blackjack, roulette, and live-game alternatives even though real-money iGaming is still banned in Illinois.

In a state where online operators face strict licensing caps, high taxes, and stalled casino legislation, sweepstakes platforms quietly expand the menu - giving Illinois bettors more variety without stepping outside legal boundaries.

Like almost every regulated state, Illinois sportsbooks cannot offer markets on elections, macroeconomic reports, award shows, or cultural outcomes. That entire category is off the board under state gambling rules.

However, Illinois residents can still access federally regulated prediction markets that operate under CFTC oversight rather than state gaming law. Platforms in that lane let users speculate on political races, economic indicators, and other real-world events that sportsbooks are legally barred from touching.

Functionally, that gives IL players a two-track environment: traditional sports and props through sportsbooks, and “real-world event” speculation through prediction markets.