Illinois Gambling Activity Generates Record Tax Revenue of $2.7 Billion

State officials released figures this month showing Illinois bettors lost record sums during the previous fiscal year, which produced $2.7 billion in gambling-related tax revenue for state coffers; that total rose 19.2 percent from the prior year and stood 90 percent above collections recorded in fiscal 2019, according to the Commission on Government Forecasting and Accountability report released in October 2026.

The data indicate that video gambling terminals surpassed the lottery as the largest single contributor to those collections, while sports wagering posted continued expansion amid broader industry changes; observers note the commission projects additional revenue growth once several new casinos open and current operators introduce expanded game options.

Revenue Figures Detail Steady Climb

Numbers compiled by the Commission on Government Forecasting and Accountability place total state gambling tax receipts at $2.7 billion for the most recent fiscal period, marking the highest annual total on record; year-over-year growth reached 19.2 percent while the cumulative increase since fiscal 2019 reached 90 percent, figures that reflect both higher participation across multiple verticals and the maturation of newer products such as sports betting.

Those totals stem directly from bettor losses, which reached unprecedented levels during the same twelve-month span; state analysts track these losses through operator filings that feed into tax calculations, and the resulting revenue stream now supports various public programs without requiring additional legislative appropriations.

Video Gambling Terminals Take Leading Position

Video gambling machines generated more tax revenue than any other category, including the long-dominant lottery, according to the same state report; terminals located at bars, restaurants and dedicated gaming sites across Illinois accounted for the largest share of the overall collections, surpassing lottery sales that had held the top spot for prior decades.

Operators report that the number of active machines and average daily play per terminal both increased during the year, producing the shift in rankings; data from the commission show this category alone contributed more than any other single source, a development that coincides with steady additions of new locations authorized under existing statutes.

Sports Wagering Continues Rapid Expansion

Sports wagering revenue grew at a pace that outstripped several established categories, with mobile and retail sportsbooks together posting substantial year-over-year gains; the commission's figures indicate that this vertical still trails video gambling and the lottery in absolute dollars yet continues to close the gap as more residents gain access through both in-person and digital channels.

Market entry by additional operators and the rollout of in-game betting features contributed to the upward trajectory, while regulatory oversight from the Illinois Gaming Board ensured compliance with tax remittance requirements; state records show sports wagering tax payments formed a growing slice of the $2.7 billion total without displacing other established sources.

Commission Projects Further Increases

The Commission on Government Forecasting and Accountability forecasts continued revenue growth in upcoming fiscal years once new casino projects reach completion and existing venues add more gaming positions; these expansions include facilities already under construction in several regions as well as regulatory approvals for additional game types at current locations.

Projections incorporate expected tax receipts from both the new casinos and the ongoing expansion of sports wagering and video gambling offerings; analysts within the commission model these increases using current participation rates and planned capital investments announced by license holders, producing estimates that exceed the record $2.7 billion collected in the most recent period.

Broader Context of State Collections

Tax revenue from gambling now forms a measurable component of Illinois general fund resources, with the $2.7 billion total reflecting activity across video terminals, lottery sales, sportsbooks, riverboat casinos and other licensed operations; the commission report breaks down contributions by category while also noting the cumulative 90 percent rise since fiscal 2019.

State budget documents show these funds help offset expenditures in designated areas, and the year-over-year jump of 19.2 percent demonstrates how participation levels responded to expanded access; observers tracking the industry point to the same report as evidence that regulatory frameworks in place since legalization of sports betting and video gambling have produced stable collection patterns.

Conclusion

The October 2026 release from the Commission on Government Forecasting and Accountability supplies the clearest picture yet of Illinois gambling activity during the prior fiscal year, documenting both the record $2.7 billion in tax revenue and the structural shift that placed video gambling ahead of the lottery; with sports wagering still expanding and new casinos slated to open, the commission's forward-looking estimates point to further increases in collections without requiring changes to existing tax rates.