Illinois Moves to Legalize Online Poker: Could Another US State Join MSIGA in 2025?

Illinois’ Latest Push for Online Poker

The two proposed bills, both named the Internet Gaming Act, were introduced by State Senator Cristina Castro and Representative Edgar González, Jr.. The legislation has a relatively simple goal — legalize and regulate online casinos and poker, establishing a tax framework and licensing structure for operators.

According to these bills, the Illinois Gaming Board (IGB) would be responsible for overseeing the online gaming industry, issuing licenses, and ensuring compliance with regulations. The proposals would also allow land-based casinos and racetracks to offer up to three online skins (or branded platforms) each, meaning multiple operators could enter the market under an already existing casino’s license.

When it comes to taxation, the idea is still pretty straightforward. The bills suggest a 25% tax on adjusted gross gaming revenue, which is higher than earlier proposals that suggested a 12% or 15% tax rate. Still, this is in line with Michigan’s 20%–28% tax model, which has been nothing short of successful so far.

One of the most important elements of the legislation is its provision for multi-state gaming agreements. The text of SB 1963 explicitly states that the IGB “may enter into agreements with other jurisdictions to facilitate, administer, and regulate multijurisdictional approved Internet games, including, but not limited to, poker.” This means Illinois could eventually join MSIGA, which currently includes New Jersey, Nevada, Delaware, Michigan, and West Virginia, with Pennsylvania sorting out the details as we speak.

So, What Could Illinois Joining MSIGA Mean for Online Poker?

After hearing this news, the next logical question has to be — What would this mean for Illinois online poker players.

While we’re still a long way from anything remotely concrete, it’s still fair to say that Illinois joining MSIGA would be a game-changer for the US online poker ecosystem. With nearly 13 million residents, Illinois would be the second-largest state to join MSIGA, just behind Pennsylvania — and we’re seeing how this partnership has affected the Pennsylvania online poker as we speak. To keep it short, being in MSIGA would mean boosting shared liquidity, larger prize pools, increased tournament guarantees, and more competitive cash games.

For operators like PokerStars, WSOP, BetMGM, and BetRivers, Illinois would be the ideal market to branch into, especially since many of these poker giants already operate online sportsbooks in the state. If Illinois joins MSIGA, it would mean that players from Illinois could compete in the same games as those from other member states, mirroring the online poker networks across Europe.

A Few Potential Hurdles to Legalizing Online Poker in Illinois

While the legislation is promising, this is not the first time Illinois has tried (and failed) to legalize online gaming. Previous efforts in 2021 and 2023 stalled primarily due to opposition from the state’s video gaming terminal (VGT) industry. For those who didn’t know, Illinois has more VGTs than any other US state, with 47,047 machines in bars, restaurants, and other non-casino locations as of 2023, according to the American Gaming Association (AGA).

VGTs generated $814 million in tax revenue in 2023 alone, making up over 40% of the state’s total gaming tax revenue. The concern from the VGT industry isn’t without some foundation. The operators are worried that legalizing online casinos and poker could cut into their market share, reducing foot traffic to venues that actually rely on physical gaming machines.

With that said, Illinois lawmakers seem to be more determined than ever to push this legislation through, and the proposed 25% tax rate could help convince even the skeptics that this bill is worth pushing through.

What’s Next for Illinois Online Poker?

Now that you know what’s going on with Illinois online poker at the moment, the question is — What comes next?

Both SB 1963 and HB 3080 had their first readings on February 6, 2025, and were immediately referred to committee for further discussion. As we’ve mentioned, the legislative process is still in the (very) early stages, and while there’s no guarantee the bills will pass, they appear to have a stronger foundation than any past attempts.

If the legislation moves forward, the Illinois Gaming Board would have 90 days to implement emergency rules for the industry. Realistically, Illinois could see online poker and casino gaming launch in late 2025 or early 2026 if everything goes according to plan.

For now, poker players in Illinois will have to wait and see if this latest effort gains enough support and we’ll be here to follow along.