Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
It is about 3 weeks until election day and we’re just over 30 days from the Illinois Legislative Veto Session. While some topics have been rumored, specific plans likely won’t be announced until post-elections.
See below for information on a variety of other topics this week.
*Government Affairs Roundup brought to you by CITGO*
Inflation Up to 3.7% in September
Inflation accelerated in September after holding steady the previous month, according to new data released Wednesday by the Bureau of Labor Statistics (BLS).
The Consumer Price Index (CPI) rose 0.6 percent in September and increased 3.7 percent from September 2025. That marked an increase from August, when annual inflation stood at 3.4 percent.
The widely followed inflation measure was expected to rise 0.5 percent for the month and reach 3.6 percent annually, according to the Federal Reserve Bank of Cleveland’s “Nowcast” projection released Tuesday.
Gasoline prices, which jumped 9.1 percent in September, accounted for more than half of the monthly increase in inflation, the BLS reported. Overall energy prices rose 5.2 percent last month, following a 2.1 percent increase in August. Food prices were unchanged in September but remained 2.5 percent higher than a year earlier.
Fuel costs have remained elevated amid the war with Iran, with President Donald Trump’s efforts to lower gasoline and diesel prices yet to produce the desired results. As of Wednesday morning, regular gasoline averaged approximately $4.33 per gallon, up from $2.98 two days before the United States and Israel launched the war, according to AAA. Diesel averaged about $6.30 per gallon, an increase of roughly $2.41 from a year earlier.
Core inflation, which excludes the more volatile food and energy categories, rose to 2.6 percent annually. That was higher than the Cleveland Fed’s projection of 2.4 percent, the same level recorded in August.
Heather Long, chief economist at Navy Federal Credit Union, said the inflation increase was largely driven by rising gasoline and diesel prices, along with higher airfares and used-car prices. “The big problem = Inflation rose 3.7% in the past year, wiping out 3% average wage gains,” Long wrote Wednesday on the social media platform X.
The latest inflation data comes two weeks before the Federal Open Market Committee (FOMC) is scheduled to decide whether to raise interest rates again. Last month, the committee increased rates by a quarter percentage point as part of its effort to bring inflation down toward its 2 percent target.
Since that decision, several Federal Reserve officials have signaled the possibility of additional rate increases. In the committee’s quarterly projections, 16 of the 18 FOMC officials forecast at least one more rate hike this year.
Illinois Gambling Revenue Hits Record $2.7 Billion as Industry Expansion Continues
Illinois collected a record $2.7 billion in gambling-related tax revenue last year, a 19.2% increase from the previous year and a 90% jump since fiscal year 2019. The growth highlights the expanding role of gambling in the state’s finances, while raising questions about the long-term sustainability of the revenue and its broader economic and social impacts.
A report released this month by the Commission on Government Forecasting and Accountability (COGFA) projects continued growth as additional permanent casinos open, Chicago begins allowing video gambling terminals in bars and restaurants, and sports wagering expands alongside new fantasy sports offerings.
The increase follows the state’s 2019 gambling expansion, which was designed in part to generate revenue for a major capital infrastructure plan. Since then, the number of authorized casinos has grown from 10 to 17. However, COGFA cautioned that recent casino revenue growth has been driven largely by new facilities entering the market rather than improved performance at individual casinos.
For the second consecutive year, video gambling terminals surpassed the Illinois Lottery as the state’s largest source of gambling revenue. These machines generated more than $1 billion in combined state and local tax revenue, while lottery revenue remained relatively flat at $788 million. Illinois now has nearly 50,000 video gambling terminals, equivalent to more than 40 full-size casinos, according to the report.
Sports wagering remains the fastest-growing segment of the industry. Bettors placed more than $15 billion in sports wagers in 2026, generating $593 million in state taxes. Despite a decline in the number of bets compared with the previous year, tax collections increased in part because of a new per-wager tax on online bets. Illinois’ sports betting industry also outpaces comparable markets: bettors in Pennsylvania, a state with a similar population and an earlier start to legalized sports wagering, lost $663 million in fiscal year 2026, compared with $1.4 billion in Illinois.
The expansion of video gambling has significantly increased the industry’s reach across Illinois. When video gambling terminals were first authorized outside casinos in 2012, industry insiders estimated the number of machines would level off at approximately 20,000. Instead, the state is approaching 50,000, with no statewide limit on the number of establishments that can offer them.
Illinoisans lost more than $3.3 billion playing video gambling terminals last fiscal year. Average net income per machine rose from approximately $117 per day in 2016 to more than $182 in 2026, indicating that growth reflects both the increasing number of machines and higher revenue per machine.
Chicago’s recent decision to lift its longstanding ban on video gambling terminals could further accelerate that trend. With more than one-fifth of Illinois residents living in Chicago, COGFA anticipates the change could have a substantial impact on future video gambling revenue.
Online sports betting has also become a multibillion-dollar industry since its legalization six years ago. Bettors placed more than 319 million sports wagers last year, nearly 99% of them online. Parlay bets, which combine multiple outcomes into a single wager, accounted for approximately 200 million bets during the most recent fiscal year, or three out of every five sports wagers.
Although parlays accounted for nearly one-third of sports betting payouts, they also produced the highest net losses for bettors, totaling $879 million. Nearly 62% of all sports betting losses came from parlays.
While gambling has become an increasingly important source of state revenue, the financial gains come with concerns about problem gambling and the sustainability of relying on the activity to support public spending. Adam Hoffer, director of excise tax policy at the nonpartisan Tax Foundation, noted that gambling taxes can put state governments in a difficult position when public policy goals conflict with the desire to generate revenue.
The state’s most recent assessment of problem gambling was conducted during the pandemic, before sports betting was fully established. That report estimated that 383,000 Illinois adults had a gambling problem, while another 761,000 were at risk of developing one. Some clinicians believe those figures understate the extent of the problem.
The assessment also highlighted serious mental health concerns, estimating that one in 10 Illinois residents with a gambling problem had considered or attempted suicide that year, while one in three had done so at some point in their lives.
Research from Connecticut provides another perspective on the distribution of gambling losses. A 2024 study found that nearly 71% of the state’s legal gambling revenue came from fewer than 7% of residents classified as problem or at-risk gamblers. More than half of sports bets were placed by fewer than 2% of residents identified as compulsive gamblers. Comparable spending data has not been studied in Illinois.
The future of gambling-related revenue could also be affected by the growth of prediction markets operated by companies such as Kalshi and Polymarket. These platforms allow users to trade contracts tied to the outcomes of events, including sporting events, and have raised questions about how existing gambling laws apply.
Illinois lawmakers passed legislation intended to bring prediction markets under state sports betting regulations. The measure included a fee structure that budget analysts estimated could generate $5 million in state revenue, along with requirements such as a minimum customer age of 21 and restrictions on betting involving in-state college teams.
The Illinois Gaming Board sent cease-and-desist letters to 13 online operators, including Kalshi and Polymarket, seeking compliance with state law. The companies maintain that their platforms are federally regulated financial exchanges under the Commodity Futures Trading Commission (CFTC), not gambling operations subject to state regulation.
In June, Kalshi, its financial partner Coinbase and the CFTC sued Illinois to block enforcement. A federal judge this week issued a preliminary injunction preventing the state from enforcing its gambling regulations against the companies, finding that the markets likely qualify as federally regulated financial swaps rather than gambling.
U.S. District Judge Martha Pacold wrote that many of the financial instruments involved are likely swaps under the Commodity Exchange Act, even if consumers find them entertaining. However, she did not yet decide whether Illinois could impose transaction fees on the platforms, stating that the issue required further argument.
For Illinois businesses and policymakers, the continued growth of gambling revenue presents both an expanding source of public funding and a series of policy considerations involving regulation, consumer protection and the state’s long-term revenue strategy. As new casinos, video gambling locations and online wagering platforms enter the market, decisions about taxation and oversight will help shape the industry’s future and its impact on Illinois communities.
Governors Form Regional Coalition to Address Rising Electricity Costs
A bipartisan coalition of governors from states across the PJM electricity grid, which serves communities from the Mid-Atlantic to the greater Chicago area, has joined forces to address rising electricity costs, grid reliability and growing demand for power.
At Thursday’s Governors’ Summit on the State of PJM in Chicago, Illinois Governor J.B. Pritzker and 12 other state and regional leaders signed a memorandum of understanding establishing the PJM Governors’ Collaborative. The new organization is intended to strengthen coordination among states and give them a greater voice in decisions affecting the regional electricity market.
“Prices in PJM’s capacity market have increased over a thousand percent from 2023,” Pritzker said, citing concerns about costly transmission expansion, insufficient regional planning and the potential for reliability problems as electricity demand grows. He added that projections point to possible supply challenges as new data centers come online.
Governor Pritzker pointed to nuclear energy as one way Illinois is working to increase electricity generation. The state has removed barriers to new nuclear power development and is pursuing upgrades to existing facilities.
His comments followed an announcement by Google and Constellation Energy of a $4.3 billion investment in nuclear generation improvements. The project is expected to add 890 megawatts of capacity to the PJM grid across multiple states.
Electricity demand has been rising for several reasons, including the rapid expansion of data centers, intensifying concerns about whether the regional grid can maintain adequate supplies during periods of peak demand and severe weather. Recent discussions involving federal energy regulators and PJM representatives have also produced recommendations for changes to the grid operator’s operations.
In Illinois, Pritzker has urged lawmakers to pass the POWER Act during the fall veto session. The proposed legislation would require new data center developments to bring additional electricity generation capacity onto the grid, along with other regulatory requirements.
The new governors’ coalition is intended to give participating states a stronger role in shaping PJM’s decisions on electricity supply, transmission planning and costs. Pritzker said states need a more meaningful voice in the regional transmission organization, particularly as major infrastructure investments and rising demand affect ratepayers.
“We deserve a meaningful seat at the table, just as our neighboring states have had with different RTOs for years now,” Pritzker said. He added that the collaborative would strengthen the states’ collective influence and resources to improve the regional electricity system.
The memorandum was signed by governors representing Delaware, Illinois, Indiana, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and New Jersey, along with the mayor of Washington, D.C.
For Illinois businesses, the effort comes as energy costs, reliable electricity supplies and the infrastructure needed to support continued economic development remain critical concerns.
Greater regional coordination could help shape future decisions affecting electricity prices, business investment and the ability of the grid to meet growing demand.
Governor Pritzker Continues to Evaluate Federal School Choice Tax Credit Program
Illinois is weighing whether to participate in a new federal school choice tax credit program set to launch January 1, following the release of official rules by the U.S. Treasury on Oct. 1.
Governor JB Pritzker said he is “still evaluating the rules” and has expressed concerns about the program. The governor had previously indicated he was waiting for federal guidance before making a decision. With the January 1 deadline approaching for states to opt in, Illinois has yet to commit to participating.
Illinois Department of Revenue Invites Public Review and Comment on Draft Proposed Rules for Digital Asset Tax until October 30th
A few weeks ago, the Illinois Department of Revenue (IDOR) posted to its website draft proposed rules implementing the Digital Asset Tax Act. Within Article 3 of Public Act 104-468, the Digital Ads Tax is a tax imposed on the digital asset broker at a rate of .2% of the value of the digital asset. The Digital Asset Tax was a small piece of the larger revenue omnibus package which passed during the late Spring Session.
IDOR encourages interested parties to review and comment by 5 PM on October 30th before the formal rulemaking process begins. Public comment can be submitted to the Department at REV.GCO@illinois.gov. The Department is interested in feedback regarding issues or questions that may not be addressed in the proposed draft rules, and additional examples that could help interested parties understand how the Digital Asset Tax Act applies to specific situations.
The draft proposed rules can be found here
Court Delays Illinois Digital Assets Tax Until July
An Illinois judge has temporarily delayed a new 0.2% tax on digital assets held or transacted by state residents, moving its effective date from Jan. 1 to July 1 while a legal challenge proceeds.
A Sangamon County judge approved an agreed preliminary injunction between the state and The Digital Chamber, which filed a lawsuit July 21 arguing the tax violates the Illinois and U.S. constitutions. Jonathan Schmalfeld, the organization’s director of policy, said legal briefings could run from November through January or February, with a decision on the merits potentially coming by early spring before any appeals.
The tax was included in a revenue package Governor J.B. Pritzker signed last June after lawmakers approved it during the final hours of the spring legislative session. It was intended to generate at least $60 million in additional state revenue.
State Rep. John Cabello (R-Machesney Park) has introduced House Bill 5798 to repeal the tax.
As of Monday, the measure had 22 Republican cosponsors. Cabello criticized lawmakers for approving the tax without a public hearing, arguing those affected should have an opportunity to weigh in before new taxes are enacted.
Illinois Department of Labor to Hold a Public Hearing on Day & Temporary Labor on Wednesday, October 21st
In this week’s edition of the JCAR Flinn Report, it was announced that the IL Department of Labor (IDOL) will be holding a public hearing on proposed amendments to the Day and Temporary Labor Services Act.
This hearing will take place on Wednesday, October 21st from 2:30 PM to 4 PM at DOL headquarters in Springfield or via Webex. To sign up to participate virtually, you must register in advance at https://illinois.webex.com/illinois/j.php?MTID=m17e2da703344d30a0c37ad5c6714c563
Individuals intending to testify in person shall submit their remarks in advance to sarah.doerr@illinois.gov or DOL.Rules@illinois.gov. It is advised that oral testimony should not exceed five minutes.
This hearing concerns proposed amendments published in the 9/25/26 Illinois Register that clarify the Day and Temporary Labor Services Act’s requirement that certain day or temporary workers hired through a day/temp labor service agency be offered substantially similar in-kind benefits (e.g., medical, dental and vision insurance) to those provided to permanent employees of their client employers who perform the same or substantially similar work under similar conditions.
This requirement applies to day/temp workers who have worked for the same client employer for more than 720 hours in a 12-month period (equal to 60 hours per month), or 4,160 hours within a 48-month period (equal to 87 hours per month). Day/temp labor services and their client employers are affected by this rulemaking.
Are You One of the Best Places to Work in Illinois? Let’s Find Out!
The Illinois Chamber of Commerce is excited to take the Best Places to Work in Illinois program to the next level! This is a brand-new fun take on the event!
For more than 20 years, this prestigious program has recognized organizations that are creating outstanding workplaces across Illinois. While the Illinois Chamber has been involved with the program for many years, we are now taking the lead in managing the program, with an increased focus on promoting and celebrating the organizations that make Illinois a great place to work.
Organizations recognized as a Best Place to Work in Illinois will receive enhanced visibility and recognition, including features in Illinois Business Leader, our statewide publication, as well as recognition at a premier awards event scheduled for May 2027.
Past participants and organizations interested in earning this distinction are invited to register for the 2027 program. The Workforce Research Group, which has managed the research process for the past five years, will continue overseeing the program’s research and surveys.
Participating organizations will complete a two-part process consisting of an Employer Assessment and an Employee Engagement Survey. At the conclusion of the process, all participating organizations will receive access to an Employee Feedback Data Dashboard, providing valuable insight into their workplace and employee experience.
Think your organization has what it takes to be one of the Best Places to Work in Illinois? Now is the time to find out.
Learn more and register at BPTWIllinois.com.
Join us as we recognize and celebrate the organizations setting the standard for great workplaces across Illinois!
Registration Deadline: January 15, 2027
Federal Reserve’s 2026 Small Business Credit Survey
Owners and key financial decision makers of for-profit businesses, share your recent experiences about what financial conditions you face, whether and how you use debt, and more. Your perspective matters. Answers to these questions contribute to data that directly informs the Fed, federal government agencies, service providers, policymakers, and others, a public good ultimately benefiting your business and others like yours.
Survey closes November 13, 2026. Click below to take the 12-minute survey now:
https://fedreserveboard.gov1.qualtrics.com/jfe/form/SV_38k9xZy8ayEERue?orgID=20261024
Storm Relief Reminder
Individuals and businesses that were impacted in the region from the July 27 and August 9-11 storms can find resources and disaster assistance, and tax relief. A disaster declaration has been approved for Will County for damage resulting from the July 27 and Aug. 9-11 storms.
Residents in surrounding counties, including Kankakee, Cook, Grundy and Kane, are also eligible.
This declaration unlocks various resources for residents and businesses in our community:
Assistance through the U.S. Small Business Administration
• Business Physical Disaster Loans: Loans to businesses to repair or replace disaster- damaged property owned by the business, including real estate, inventory, supplies, machinery and equipment. These applications must be received by the SBA no later than Oct. 19, 2026.
• Economic Injury Disaster Loans: Working capital loans to help small businesses, small agricultural cooperatives and most private nonprofits meet their ordinary and necessary financial obligations that cannot be met as a result of the disaster. These applications must be submitted to the SBA no later than May 18, 2027.
• Home Disaster Loans: Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles. These loan applications are due Oct. 19, 2026.
Residents can apply for assistance in person at the outreach center listed below, online at sba.gov/disaster or by calling 800-659-2955.
Severe weather tax relief through the Illinois Department of Revenue
Disaster tax relief may also apply to residents and businesses in our area who were affected by the severe storms. Taxpayers can send a brief written explanation to the Illinois Department of Revenue requesting a waiver of tax penalties and interest, which can be submitted electronically to Rev.DisasterRelief@Illinois.gov. Find more information here.
Property damage
Taxpayers who experienced property damage should contact their county supervisor of assessments if they wish to apply for a reassessment:
• Cook County
• Will County
• Kankakee County
• Kendall County
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct