Taxes and gambling - when is it enough?
2026/10/12 original publication
Illinois has a problem with spending money and every they try to
correct the situation they just make it worse. When I was born
Illinois lived on sales and property taxes. In 1932 then governor
Louis Emmerson tried to implement a progressive income tax. The
Illinois State Supreme court found it unconstitutional. It was the
IlliIllinois has a problem with spending money and every they try to
correct the situation they just make it worse. When I was born
Illinois lived on sales and property taxes. In 1932 then governor
Louis Emmerson tried to implement a progressive income tax. The
Illinois State Supreme court found it unconstitutional. It was the
Illinois constitutional rewrite of 1969 that got the income tax
implemented in 1970.
The reason to have
an income tax was to relieve the population of increasing property
taxes driven specifically the funding of education. Sound good?
Don’t forget, this is Illinois. It would not last. So in 1974
Illinois Created the lottery. Proceeds were initially directed to
the General Revenue Fund before being earmarked for the Common School
Fund in 1985. The proposal in 1974 was advertised to go towards
education. It took that long for Illinois to fulfill that statement.
Illinois state law
effectively banned pinball starting in 1937 when Attorney General
John E. Cassidy declared the machines gambling devices. A 1942
Illinois Supreme Court ruling upheld that machines awarding free
replays were "mechanical gambling devices" under an 1895
statute, though it allowed local jurisdictions to determine specific
bans. The ban persisted through mid-century raids and legislative
debates, finally being overturned in January 1977 after the
introduction of manually controlled flippers shifted public
perception from a game of chance to one of skill.
I mention pinball
machines and gambling being the reason for the ban is that in
Illinois legalized Casino gambling in 1990 with the passage of the
Riverboat Gambling Act, making the state the second in the nation to
authorize such gaming. The first riverboat casino, the Argosy Casino
Alton, officially opened its doors in September 1991. Ten licenses
were allocated. In 1999 legislation was amended to allow riverboats
to remain permanently docked, effectively creating land-based
casinos. The in 2019 The Gaming Expansion Implementation Act
authorized six new land-based casino licenses, including one
specifically for Chicago, and allowed existing riverboat casinos to
transition to permanent land-based operations. Today, 17 authorized
casinos operate across the state, regulated by the Illinois Gaming
Board. Illinois generated a record $2.7 billion in tax revenue from
all gambling sources in fiscal year 2025, a 19.2% increase from the
prior year, with $1.94 billion specifically attributed to physical
casino gross gaming revenue. This revenue is distributed through
several funds to support state infrastructure, education, and local
governments.
Illinois legalized
video gaming terminals (VGTs), commonly referred to as slot machines
in bars and retail establishments, in July 2009 with the passage of
the Video Gaming Act. First the lottery then video gambling. The
initial tax revenue per VGT has grown from 30% in 2019 to the current
rate of 34%.
If that is not
enough, Illinois then legalized cannabis and marijuana. They make
upwards of over $450 million in tax revenue.
With all of these
new taxing items since 1970, will there ever be a limit? It seems
not. Pritzker increased 63 taxes and fees in the 2026 legislative
session. There is movement on the Illinois exit tax.
We have stated on
this site that Pritzker cannot do it alone. He has accomplices in
the legislature.
The big question is
why does Illinois put up with this crap? Can the population of
Illinois have the will to have legislators and a governor along with
mayors and town councils not be greedy and nutzoidness? Who really
loses with the elimination of the Illinois way? Logic dictates that
the population will win!nois constitutional rewrite of 1969 that got the income tax
implemented in 1970.
The reason to have
an income tax was to relieve the population of increasing property
taxes driven specifically the funding of education. Sound good?
Don’t forget, this is Illinois. It would not last. So in 1974
Illinois Created the lottery. Proceeds were initially directed to
the General Revenue Fund before being earmarked for the Common School
Fund in 1985. The proposal in 1974 was advertised to go towards
education. It took that long for Illinois to fulfill that statement.
Illinois state law
effectively banned pinball starting in 1937 when Attorney General
John E. Cassidy declared the machines gambling devices. A 1942
Illinois Supreme Court ruling upheld that machines awarding free
replays were "mechanical gambling devices" under an 1895
statute, though it allowed local jurisdictions to determine specific
bans. The ban persisted through mid-century raids and legislative
debates, finally being overturned in January 1977 after the
introduction of manually controlled flippers shifted public
perception from a game of chance to one of skill.
I mention pinball
machines and gambling being the reason for the ban is that in
Illinois legalized Casino gambling in 1990 with the passage of the
Riverboat Gambling Act, making the state the second in the nation to
authorize such gaming. The first riverboat casino, the Argosy Casino
Alton, officially opened its doors in September 1991. Ten licenses
were allocated. In 1999 legislation was amended to allow riverboats
to remain permanently docked, effectively creating land-based
casinos. The in 2019 The Gaming Expansion Implementation Act
authorized six new land-based casino licenses, including one
specifically for Chicago, and allowed existing riverboat casinos to
transition to permanent land-based operations. Today, 17 authorized
casinos operate across the state, regulated by the Illinois Gaming
Board. Illinois generated a record $2.7 billion in tax revenue from
all gambling sources in fiscal year 2025, a 19.2% increase from the
prior year, with $1.94 billion specifically attributed to physical
casino gross gaming revenue. This revenue is distributed through
several funds to support state infrastructure, education, and local
governments.
Illinois legalized
video gaming terminals (VGTs), commonly referred to as slot machines
in bars and retail establishments, in July 2009 with the passage of
the Video Gaming Act. First the lottery then video gambling. The
initial tax revenue per VGT has grown from 30% in 2019 to the current
rate of 34%.
If that is not
enough, Illinois then legalized cannabis and marijuana. They make
upwards of over $450 million in tax revenue.
With all of these
new taxing items since 1970, will there ever be a limit? It seems
not. Pritzker increased 63 taxes and fees in the 2026 legislative
session. There is movement on the Illinois exit tax.
We have stated on
this site that Pritzker cannot do it alone. He has accomplices in
the legislature.
The big question is
why does Illinois put up with this crap? Can the population of
Illinois have the will to have legislators and a governor along with
mayors and town councils not be greedy and nutzoidness? Who really
loses with the elimination of the Illinois way? Logic dictates that
the population will win!