After a few unsuccessful attempts to legalize iGaming, Illinois lawmakers are once again pushing the initiative to open its market to reputable online casino operators.
This time, the initiative appears more likely to gain momentum and approval after Governor JB Pritzker recently expressed his willingness to explore online gaming as a potential revenue source to address Illinois’ significant budget deficit.
Two New Bills Await Signature to Become Laws
The legislation addressing the legalization of online casino gaming has been submitted three years in a row but has been rejected each time.
Rep. Edgar González, Jr. and Sen. Cristina Castro have proposed the latest versions of the legislation, House Bill 3080 (HB 3080) and Senate Bill 1963 (SB 1963), which are almost the same as the previous proposals.
The bills suggest allowing existing gaming license holders to run up to “three individually branded internet gaming skins.” The biggest change is raising taxes from 15% to 25%.
If approved, Illinois iGaming sites could offer online slots, table games, poker, and live dealer games.
Castro and Gonzalez also propose a workforce retention rule. Operators renewing licenses cannot cut staff by 25% or more.
This aims to ease labor unions’ concerns that online gaming could cause job losses in casinos and hospitality.
Higher tax revenue would go to the State Gaming Fund for gaming regulation and education. The House Rules Committee is reviewing HB 3080, while SB 1963 is still waiting.
Strong Opposition from VLT Operators
The video lottery terminal (VLT) industry may be the biggest hurdle on the road to legalizing online gambling in Illinois.
Restaurants, bars, and various small businesses across the state now have thousands of video lottery terminals. These terminals are similar to slot machines and currently provide a sizable revenue stream for gaming operators and business owners.
Therefore, VLT operators have a strong presence and influence in Illinois and have already shown their strong opposition to passing laws regulating online gambling. Their main argument is that iGaming sector could jeopardize the already thriving VLT industry and relocate the revenue from existing land-based gaming locations.
Budget Deficit Crucial for Legalizing Online Casinos in Illinois?
Illinois currently has a $3bn budget deficit, which is one of the main arguments used by those in favor of iGaming law. The supporters say that taxes collected from online gambling operators could help the state address the huge budget deficit.
Senator Cristina Castro has emphasized that revenue from the iGaming market could effectively help close the existing budget gap.
Quick Overview of the Illinois Gambling Market
Although online casinos are still not allowed in the state, Illinois has a legal sports betting market. The state introduced the fully regulated sports betting in June 2019.
Sports betting was approved using a system like the one proposed for online casinos. Licensed operators can run sportsbooks or partner with others.
If the new bills become law, major gaming operators can offer services by partnering with land-based casinos in Illinois.
The last two attempts to pass these bills failed. Strong opposition from the VLT industry and others makes legalization difficult.
However, Illinois has a high budget deficit. The governor supports the idea, which could help lawmakers succeed this time.
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