Illinois Legislature Considering Online Casino Gambling

An iGaming bill is being debated in the Land of Lincoln, and should it pass, Illinois citizens will be able to gamble on slots and casino table games on their mobile devices or PCs.

Top sportsbooks are also watching closely, as the expansion of online gambling could further boost the state’s growing market for digital wagering and sports betting platforms.

The Great Debate

Online casino gambling has been a hot topic in state legislatures this year as budget deficits compel lawmakers to think outside the box and consider previously untenable options. Although mobile sports betting was quick to be accepted and is now available in 33 states, with Missouri set to launch before the end of this year, iGaming has generally received a chilly reception.

Although sports betting has become commonplace throughout the US, only seven states have adopted online casino gambling, including:

• Delaware
• Nevada
• New Jersey
• Pennsylvania
• West Virginia
• Michigan
• Rhode Island

The major objections are possible cannibalization of land-based casinos located in the state and fears that a 24-hour casino located at the tips of one’s fingers could lead to soaring gambling addiction rates.

However, iGaming proponents cite studies that contradict the narrative that digital casinos negatively impact retail casino foot traffic and point to studies that show that only 3% of the population has problem gambling issues.

Nevertheless, the iGaming debate has been raging in several state legislatures this year as online casino gambling revenues dwarf those of sports betting. Tapping a substantial new revenue source has become more tempting for lawmakers this year as budget shortfalls loom.

Could Illinois Be the Next iGaming State?

A bill to bring iGaming to Illinois is now being considered in the House Gaming Committee, and it has the support of Governor JB Pritzker, who has been quoted as saying, “iGaming is worthy of consideration.”

The gaming industry consultancy firm Eilers & Krejcik estimated Illinois would reap $775 million in state tax revenues after five years of legalized iGaming at a nearly 25% tax rate. It is certainly money the state could use, and the opportunity to narrow the budget deficit may be too tempting even for legislators who may not be particularly fond of the gambling industry.

“Whether or not you choose to pass legislation legalizing iGaming, it is already here,” said James Hartmann, a lobbyist for sports betting powerhouse FanDuel. “Right now, you can take out your phone and, in five minutes, be gambling real money slot machines from the app store, unregulated and untaxed.”

Another industry mouthpiece, the Sports Betting Alliance, has posted the following on its website: “iGaming is already happening in Illinois, operating under legal loopholes, and making massive profits while robbing the state of hundreds of millions in potential annual tax revenue. Legalizing iGaming in Illinois regulates the industry, protects players, and unlocks new tax revenue.”

iGaming’s Potential Impact

However, opponents are also having their say, and in addition to casinos, there is also the issue of video gambling terminals (VGTs) that dot the Illinois landscape. VGTs can be found in bars and other small businesses throughout the Land of Lincoln, and stakeholders in that sector are naturally opposed to the increased competition that online casino gambling will pose.

Many casino operators are vehemently against iGaming despite the fact that many will get a share of the profits by partnering with a national iGaming platform. However, they contend that those revenues will not be enough to compensate for the unshared revenues they would make from in-person casino gambling.

Jay Keller, a lobbyist for Penn Entertainment Inc., stated that the company has spent $600 million renovating and expanding its casinos in Aurora, Joliet, and Alton with the understanding that the gaming landscape would not be altered.

“The economic impact of iGaming is uncertain, but the potential negative consequences are clear: The proliferation of online gaming could reduce in-person casino traffic, threatening jobs, lowering the economic benefits to local communities, and ultimately discouraging future investments in the state,” Keller said.