Illinois governor proposes merger of gaming and racing regulators under executive department

Illinois Gov. JB Pritzker is advancing a plan to merge the state’s two gambling regulators into a single executive branch department, a move that would eliminate public board meetings that have long governed gaming oversight.

The proposal, included in the fiscal year 2027 budget, would take effect July 1 if approved by the Illinois General Assembly.

Under the plan, the Illinois Gaming Board and the Illinois Racing Board would be eliminated. Their responsibilities would transfer to a Department of Gaming Regulation and Enforcement, operating within the executive branch.

The department would oversee licensing, enforcement, tax collection, and regulation across casinos, sports betting, video gaming, horse racing, and off-track wagering.

Currently, both boards consist of governor-appointed members who deliberate and vote in public sessions on licensing, operator suitability, and disciplinary matters. Those functions would shift to administrative decision-making within the new department, with no public votes or regular public meetings.

“The proposal to merge the Illinois Racing Board and the Illinois Gaming Board in the Governor’s proposed budget is designed to streamline oversight and improve how the state regulates a rapidly expanding gaming landscape,” a Pritzker spokesman said.

“Today, responsibility for closely related gaming activities is split between two separate boards, which can lead to less accountability and transparency. Bringing these boards under one unified structure will improve efficiency, strengthen accountability and ultimately better serve the public.”

Public access versus administrative decisions

The removal of open meetings has drawn attention from stakeholders who view the sessions as a mechanism for oversight.

For decades, public board meetings have allowed industry participants, journalists, and citizens to observe deliberations on licenses and enforcement actions. Under the proposal, decisions would be issued administratively, rather than debated and voted on in public.

Pritzker’s office said records would remain accessible.

“All information currently available through Illinois Gaming Board processes will continue to be publicly accessible, including licensing actions, disciplinary matters, disclosure statements, and enforcement activity,” the governor’s office said.

The proposal also indicates lawmakers would retain oversight through reporting requirements to the legislature, budget and subject-matter hearings, and Senate confirmation of department leadership.

State Sen. Bill Cunningham said consolidation could address delays but noted the need for oversight.

“One of the criticisms of both the racing board and gaming board over the years has been that they move very slowly,” Cunningham said. “The counter is that it allows for a full vetting process. There’s probably a happy medium between having a board that unnecessarily slows down decisions and having no board, which doesn’t allow for transparency.”

Expanding market under regulatory pressure

The proposal comes as Illinois now oversees a large and complex gambling market following a 2019 expansion that legalized sports betting, added six casinos, and increased video gaming terminals statewide.

The Gaming Board regulates 16 standalone casinos, more than 49,000 slot machines outside casinos, and a sports betting sector that ranks among the largest in the US.

State revenue from gambling reached $871 million from video gaming terminals, $186 million from casinos, $380 million from sports betting, and $7 million from horse racing last year.

Pritzker’s budget also proposes changes to table game taxes at 15 of the state’s 16 casinos, projected to generate $120 million in additional revenue. The Bally's Chicago casino would be excluded due to a separate tax structure.

The consolidation proposal follows scrutiny of regulatory performance during Pritzker’s tenure.

Reporting by the Chicago Sun-Times documented cases where entities with alleged organized crime ties were linked to gaming-related operations, including waste hauling at casino construction sites. Similar concerns have been raised about access to gaming facilities by individuals with such associations.

The Gaming Board has also faced questions over licensing decisions and internal processes, including instances where reversals were not publicly explained.

Pritzker previously held a stake in the Grand Victoria Casino, which he later divested. Trusts associated with him also held interests in casino properties in Indiana and the Niagara Falls area.

Public board meetings have historically served as venues for vetting applicants and allowing comment from community members and industry participants. Meeting frequency has declined in recent years, with 10 meetings in 2019, eight in 2020, 13 in 2021, and eight annually from 2022 to 2024, followed by seven last year.

Legislation to implement the restructuring has not yet been filed. Lawmakers are expected to determine governance and oversight details for the new department.

Campaign finance records show that the top two legislative leaders have received more than $500,000 since 2019 from Accel Entertainment, a video gaming operator. One of the company’s lobbying firms is led by attorney Michael Kasper, a longtime figure in Illinois state politics.

The Gaming Board’s next scheduled public meeting is April 23, as discussions continue over a proposal that would change how gambling oversight is conducted in the state.