Legalized gambling is great investment for Illinois, for now

Gambling opportunities, whether they be lottery tickets, on-line sports wagers, casino gambling or slot machines, have become ubiquitous around the nation, and certainly in Illinois. Anytime the Powerball or Mega Millions jackpots reach $1 billion, billboards across the state are quick to announce the news and the chance to become the next billionaire.

Legalized gambling is now a mainstay in most states, and for good reason: it generates millions of dollars of revenue for state coffers without increasing taxes. Without this revenue stream, states would need to identify alternative revenue sources or eliminate services, something that politicians are reluctant to do.

Given that people can gamble in almost any state, if one state pulls in gambling opportunities, gambling activity can be quickly picked up by other states which are more than happy to collect the revenue.

For most people, gambling is a form of entertainment, and for some, a very expensive one. Whether it is lottery commissions, casinos, or sports books, agencies must take in more money than they give out. This is guaranteed by the odds always being slanted in their favor. For gamblers, as they place more bets, they are certain to lose more, effectively contributing to the profitability of these gaming enterprises.

For example, in Illinois, lotteries return around 65% of every dollar taken in back to the people who buy lottery tickets. The remaining 35% is used to pay expenses (around 10 percent) and the profit for the state (around 25%), labeled “public funds.” Illinoisans bought over $3.75 billion of lottery tickets in 2025, ranking 13th among all states. That comes to nearly $300 on average for every Illinoisan.

Casino gambling in Illinois had a record year in 2025, generating more than $1.9 billion of profits. The state benefits from such monies both from the casinos directly (with both an admissions tax and a wagering tax) as well as taxes on the winnings of the people placing bets. There are now 17 casinos and around 9,000 licensed video gaming locations around the state, providing numerous opportunities for Illinoisans to lose their money.

Sports gambling became legal in Illinois in March 2020. In 2025, over $12 billion was wagered in Illinois, with over $1 billion of gross profits generated for sport books. Illinois recently imposed additional taxes on sports bets, making it one of the most progressive sports betting taxing states in the nation.

Gambling has become a critical part of the Illinois state budget. The state’s annual report “Wagering in Illinois” outlines the contribution of gambling to the state’s revenue stream. It states “In FY 2025, the state’s share of tax revenues from wagering in Illinois totaled $2.234 billion, a 6.8% increase over FY 2024 level.” This represents around four percent of the state’s annual budget.

All this sounds quite positive. But there is a reason why gambling revenue is labeled a “sin tax.” Having gambling venues and opportunities widely available makes it easier for people to fall into gambling addiction. Given that 25% of Americans are estimated to gamble on-line daily, that translates into over 3 million Illinoisans on average placing a bet every day. Moreover, the people who are the poorest are also those most likely to have a gambling problem. Legalized gambling has also been linked to upticks in violent crime.

So what can be done about this? In the short term, not much. Yet experience with other addictions like alcoholism and drugs suggest that additional social services are needed to address gambling addictions.

Much like how the Illinois Division of Substance Use Prevention and Recovery within the Illinois Department of Human Services (IDHS) provides resources to facilitate treatment services, IDHS also provides Gambling Help resources and services, at a cost of around $10 million annually, less than one-half of one percent of the revenue that gambling brings to the state budget. Facilitating more treatment programs would be a wise investment for the state.

Simply warning gamblers that if they are experiencing problems that they reach out to 1-800-GAMBLER sounds nice, yet will do little to stop the carnage that excessive gambling brings to those mired in addiction, including the families of gambling addicts.

Just because something is legal does not mean it is acceptable. Gambling will continue in Illinois, and every other state where it is permitted. For those who never gamble, you are reaping the benefit of not voluntarily giving away your money. Fo those who gamble regularly, is the entertainment benefit worth the cost? For those trapped in a gambling addiction, seek help.

As for the state as a whole, it is gaining in the short term, though the extent of future societal costs remains to be seen.

• Sheldon H. Jacobson, Ph.D., is a professor of computer science at the University of Illinois at Urbana-Champaign.