Illinois Casino Revenue Nearly Hit Pre-Pandemic Levels In 2022

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Written By Dave Briggs on January 9, 2023

The Illinois casino industry produced $366 million in taxes in 2022, while gross revenue figures rebounded nearly to 2019 levels.

According to recent data from the Illinois Gaming Board, casinos in Illinois generated around $1.348 billion in total adjusted gross revenue in 2022. The figures suggest that casinos are nearly back to their usual operations following two difficult years of pandemic-related closures.

Casino revenue is just 0.4% below the 2019 total of $1.354 billion, which was the last year before the COVID-19 pandemic impacted the numbers.

The closure of IL casinos due to the 2020 pandemic, lasting from March 16 to June 30, resulted in a 73% drop in revenue compared to the previous year. Although there was a recovery in 2021 with revenues totaling $1.187 billion, the ongoing effects of the pandemic were still felt.

Revenue in 2022 saw a 14% increase from the previous year.

It should be emphasized that in 2022, Illinois had 11 land-based casinos, whereas from 2019 to 2021, only 10 casinos were in operation in the state.

Illinois casino attendance topped 9 million in 2022

Illinois casinos experienced a surge in attendance in 2022 with over 9 million visitors, marking a recovery from previous years. Nevertheless, this was still a 13% decrease from the 2019 numbers, which surpassed 10 million.

The casino admissions for each year were as listed:

2019 — 10,447,223
2020 — 2,414,690
2021 — 7,684,535
2022 — 9,099,798

Revenue to state and local authorities in 2022 was over $366 million

In 2022, there was a notable 307% increase in total taxes returned to Illinois state and local authorities from casinos compared to 2020, and a modest 16% increase compared to 2021. However, there was a 19% decrease compared to 2019.

In 2022, casinos contributed approximately $366.5 million in taxes, with $290 million going to the state and $76.5 million going to local governments. This distribution was similar to the local tax share in 2019, but the state tax share alone in 2019 exceeded $377 million, resulting in a total tax contribution of over $455 million.

The decrease in casino taxes from 2019 is mainly due to a slight decrease in the casino tax rate implemented in July 2020. According to the Illinois Gaming Board (IGB), the wagering tax is applicable to all casino gambling activities, with the exception of table games.

15% of adjusted gross revenue up to $25 million is taken.
22.5% of the adjusted gross revenue between $25 million and $50 million.
27.5% of AGR exceeding $50 million but not exceeding $75 million.
32.5% of AGR between $75 million and $100 million.
An AGR between $100 million and $150 million has a tax rate of 37.5%.
Between $150 million and $200 million, 45% of AGR.
AGRs exceeding $200 million by 50%.

The tax rates for table games are as outlined below:

A 15% fee is applicable to AGR amounts up to $25 million.
20% of AGR over $25 million.

Casinos are taxed by the state based on their number of visitors, with tax rates ranging from $3 to $5 per person depending on the casino’s annual attendance.

Even more growth expected in 2023

It is expected that numbers will surpass 2019 levels by 2023, as Illinois is currently seeing a boom in casino expansion.

The Prairie State plans to introduce five new casinos and one larger one in 2023, increasing the total number of casinos in the state to 16 as part of a revenue-boosting strategy.

The opening of the temporary location of the American Place Casino in Waukegan is expected to be in January.
Golden Nugget Danville is scheduled to open in March 2023.
Bally’s Chicago will open its temporary casino at the Medinah Temple in June 2023.
It is expected that the Walker’s Bluff Casino Resort in Williamson County will open in 2023.
The Hard Rock Rockford casino is scheduled to open permanently in late 2023, after the opening of the temporary Hard Rock: Opening Act casino in 2021.
The Wind Creek Chicago Southland Casino, situated on the border of Homewood and East Hazel Crest, IL, is expected to open in late 2023 or early 2024.

Furthermore, racinos will be opening at both Hawthorne Race Course in Cicero, IL and the FanDuel Sportsbook and Horse Racing in Fairmount, IL, near St. Louis.