Illinois Achieves Record $2.7 Billion Gambling Tax Revenue in Fiscal Year 2026
Written by Devon Klein · Oct 9, 2026
Illinois Achieves Record $2.7 Billion Gambling Tax Revenue in Fiscal Year 2026
Illinois collected a record $2.7 billion in gambling-related tax revenue during fiscal year 2026, which ran from July 2025 through June 2026, and this total reflects a 19.2 percent increase compared to the previous year along with roughly 90 percent growth since fiscal year 2019. The figure encompasses contributions from casinos, sports wagering, video gambling terminals, and the state lottery, with officials noting continued expansion tied to new facilities and additional product offerings. Data compiled for the Illinois General Assembly shows these streams combined to produce the highest annual total on record, and the report projects further increases as operators open additional locations and introduce expanded betting options.
Revenue Sources and Shifts in Market Leadership
Video gambling machines emerged as the leading revenue generator during the period, surpassing the lottery for the first time in state history, while sports wagering contributed substantial amounts driven largely by parlay bets that produced more than $875 million in losses for bettors. Casinos added steady tax payments throughout the year, and the lottery maintained consistent performance even as video terminals pulled ahead in overall collections. Observers note that the diversification across these categories helped stabilize total receipts despite fluctuations in individual segments, and the shift in rankings between video terminals and the lottery highlights changing player preferences within the state market.
Sports Wagering Performance Details
Sports wagering activity accelerated during fiscal year 2026, with parlay-style bets accounting for a significant share of handle and resulting in those $875 million in player losses that fed directly into tax calculations. Multiple operators reported higher volumes during major sporting events, and the category continued to build on earlier gains since legalization expanded across the state. Figures from the Annual Wagering Report (fiscal year 2026) break down how these bets contributed to the overall 19.2 percent year-over-year increase, while also illustrating how the category has grown since its early rollout phases.
Long-Term Growth Trajectory Since Fiscal Year 2019
The path from fiscal year 2019 to the current record shows nearly 90 percent cumulative growth in tax revenue, and this expansion occurred across multiple legislative and regulatory changes that broadened legal gambling options. Early gains came from expanded video terminal placements and new casino developments, while later years added sports wagering as a major driver. State records indicate steady upward movement each fiscal period, with fiscal year 2026 marking the largest single-year total and the strongest percentage increase in recent cycles. Analysts tracking these trends point to infrastructure investments and product innovation as primary factors behind the sustained rise.
Projected Expansion from New Casinos and Offerings
The same report outlines expectations for additional revenue growth in upcoming fiscal periods as new casinos open and operators introduce expanded game selections and betting formats. Several projects already under construction or in permitting phases are scheduled to come online after June 2026, and these additions are anticipated to increase both handle and associated tax collections. Officials have stated that video terminal counts will likely continue rising in existing venues as well, further supporting the upward trajectory. Data within the Annual Wagering Report (fiscal year 2026) models potential outcomes under different expansion scenarios, showing ranges that exceed the current $2.7 billion benchmark within the next two to three years.
October 2026 Context and Ongoing Monitoring
As of October 2026, state agencies continue to review preliminary data from the first quarter of fiscal year 2027 to determine whether the momentum from the prior year persists, and early indicators suggest collections remain on pace with or above fiscal year 2026 levels in several categories. Regulatory bodies track monthly remittances from video terminals, sportsbooks, casinos, and lottery sales, and any deviations from projections receive immediate attention. This monitoring process allows lawmakers to assess whether additional regulatory adjustments or infrastructure support may be needed to maintain growth.
Conclusion
Illinois reached a historic milestone with $2.7 billion in gambling tax revenue for fiscal year 2026, driven by a 19.2 percent annual increase and sustained expansion across casinos, sports wagering, video terminals, and the lottery. Video gambling machines overtook the lottery as the top source, parlay bets produced notable player losses that contributed to sports wagering totals, and projections point to further gains from new facilities. The nearly 90 percent growth since fiscal year 2019 underscores the sector's evolving role within the state's budget framework, and ongoing developments through late 2026 and beyond will determine how these trends continue.