Gambling critics claim that casinos are still making profits.
The two sides sparred during a 4 1/2 hour hearing tuesday before the Illinois House Gaming Committee.
Gov. Rod Blagojevich had hoped the higher tax would bring in $200 million a year to help solve the state's $5 billion deficit.
But a report expected to be released this week by the Illinois Economic and Fiscal Commission estimates the state will bring in only $160 million from the higher tax. That's according to the commission's executive director, Dan Long.