BetMGM Illinois: Legal Sportsbook, No Casino, Triple-Taxed

BetMGM Illinois has run a fully licensed, legal online sportsbook since 2020, overseen by the Illinois Gaming Board. What has changed isn’t the legality — it’s the bill. Illinois has layered a progressive state tax, a per-wager fee, and now a Chicago city tax on top of each other in the space of two years, and there is still no BetMGM Casino here because online casino itself isn’t legal in the state yet.

Legal status in Illinois

Illinois legalized sports wagering through the Sports Wagering Act, part of the broader 2019 gaming expansion law (Public Act 101-31), and the Illinois Gaming Board began licensing retail books in March 2020 with mobile wagering following soon after. BetMGM has operated as a licensed online sportsbook since that rollout; the early requirement that bettors register in person at a licensed venue before using the app was dropped effective March 2022. Illinois does not yet license online casino gaming — legislation to create one (filed in recent sessions as HB 4797 and, in an earlier version, HB 1167) has stalled in committee each year, so there is no BetMGM Casino product in the state. Taxation, not legality, is the moving target: a flat 15% privilege tax gave way in the FY2025 budget to a progressive rate that climbs from 20% to 40% of adjusted sports-wagering revenue as an operator’s handle grows, a per-wager fee of 25 cents (50 cents for the two operators who clear 20 million annual bets) took effect July 1, 2025, and the city of Chicago layered its own 10.25% tax on wagers placed within city limits starting January 1, 2026.

State gambling authority: Illinois Gaming Board — licenses every retail and online sportsbook operator in the state, including BetMGM, and publishes monthly handle and revenue figures by operator.

BetMGM Illinois has been a legal, licensed sportsbook since the state’s 2020 rollout, and nothing about that has changed. What has changed is the bill attached to every wager: Illinois has added a new charge roughly once a year since 2024, stacking a progressive state tax, a per-bet fee, and now a Chicago city tax on top of each other. There is still no BetMGM Casino here, for a separate reason — Illinois itself hasn’t legalized online casino gaming yet.

Is BetMGM Legal in Illinois?

Yes. The Sports Wagering Act, part of the state’s 2019 gaming expansion law, gave the Illinois Gaming Board authority to license sportsbooks, and retail wagering launched in March 2020 with mobile following that year. BetMGM has held a continuous license since. Illinois initially required bettors to register in person at a licensed venue before they could use a mobile app — a transitional rule the legislature dropped effective March 2022. Since then, sign-up has been entirely online, same as most other licensed states.

The tax stack, in order: a flat 15% privilege tax until the FY2025 budget replaced it with a progressive rate climbing from 20% to 40% of adjusted revenue as an operator’s handle grows. Then, on July 1, 2025, a per-wager fee arrived — 25 cents on each of a sportsbook’s first 20 million annual online bets, 50 cents past that threshold (a tier only DraftKings and FanDuel actually reach). Then, on January 1, 2026, the city of Chicago added its own 10.25% tax on wagers placed within city limits. Three separate charges, three separate years.

Is BetMGM Legit in Illinois?

The per-wager fee gets blamed for a lot that isn’t about legitimacy. BetMGM is the same MGM/Entain joint venture in Illinois that it is in every other licensed state, audited the same way, reporting the same way to the same type of regulator. DraftKings and FanDuel have each said they’re passing a version of the new fee on to customers because they’re the two operators who actually clear the 20-million-bet threshold that triggers the higher 50-cent rate; BetMGM sits under that volume. A line item on a bet slip is a tax question, not a trust question.

No Online Casino — Because Illinois Doesn’t Have One

Illinois has not legalized online casino gaming at all, for any operator. Bills to create an Internet Gaming Act have been filed in back-to-back sessions and stalled in committee each time, with a 2026 version proposing a 25% privilege tax on adjusted gross gaming revenue if it ever clears the General Assembly. Until it does, “BetMGM Casino” isn’t a product gap specific to this brand — it’s a product that doesn’t exist in Illinois for anyone, licensed or not. Compare that to Michigan, New Jersey, Pennsylvania, and West Virginia, the four states where BetMGM actually runs both.

Is BetMGM Safe in Illinois?

Yes, in the way regulatory oversight makes something safe: Illinois Gaming Board licensing, geolocation that enforces the state and even the city line now that Chicago taxes wagers differently, and the standard toolkit — deposit limits, self-exclusion — tied to state problem-gambling resources. That oversight doesn’t touch the underlying math of a sports bet. The house edge is identical whether the state is taking 15% or 40%.

Who It Fits

Illinois bettors 21 and older get the real, licensed BetMGM sportsbook, with none of the uncertainty Texas or California readers face — just a market where the state, and now the city of Chicago, both take a growing cut. There’s no casino product to wait on either, since the state hasn’t built the law for one. Treat any bet as entertainment spending, not income. If gambling stops being fun, call 1-800-GAMBLER.

BetMGM Illinois — Frequently Asked Questions

Is BetMGM legal in Illinois?

Yes. The Illinois Gaming Board licensed BetMGM as part of the state’s 2020 sports-wagering rollout under the Sports Wagering Act, and the license has been continuous since. A resident 21 or older can use the real, regulated app today — no workaround, no gray area.

Is BetMGM legit in Illinois, or is the per-bet fee a sign something’s wrong?

The fee is a state revenue tool, not a legitimacy problem. Illinois began charging sportsbooks 25 cents for each of their first 20 million annual online bets (50 cents beyond that) on July 1, 2025, and the two operators who actually clear that volume — DraftKings and FanDuel — have each said publicly they’re passing a version of it on to bettors. BetMGM is the same MGM/Entain joint venture here that it is in every other licensed state; the fee changes Illinois’s economics for every operator, not BetMGM’s standing specifically.

Is BetMGM safe to use in Illinois?

Yes, in the regulatory sense that matters: Illinois Gaming Board licensing, mandatory geolocation to confirm a bettor is actually inside the state, and standard responsible-gambling tools — deposit limits, self-exclusion — administered through state problem-gambling resources. None of that changes the odds; the house edge is the same regardless of how many taxes sit on top of the bet.

Does BetMGM have an online casino in Illinois?

No. Illinois has not legalized online casino gaming at all — bills to create one have stalled in committee in back-to-back sessions — so there is no BetMGM Casino product here, unlike Michigan, New Jersey, Pennsylvania, and West Virginia, where BetMGM runs both. What exists in Illinois is the sportsbook only.

Why do Illinois sportsbooks suddenly cost more to use?

Three separate charges stacked on top of each other in under two years. The state replaced its flat 15% privilege tax with a progressive 20%-to-40% rate tied to handle in the FY2025 budget, added a per-wager fee of 25 to 50 cents on July 1, 2025, and the city of Chicago began charging its own 10.25% tax on in-city wagers on January 1, 2026. A state lawmaker has since filed a bill (HB 5143) to repeal the per-wager fee, but it had not passed as of this writing.

Did BetMGM once require in-person sign-up in Illinois?

Yes. Illinois originally required a bettor’s first registration to happen in person at a licensed casino or venue — a rule meant to ease into mobile wagering gradually. The state legislature dropped that requirement effective March 2022, after which Illinois residents could sign up for BetMGM entirely online.

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