Lawmakers in Illinois have taken their discussions of online gambling and recently crafted two iGaming bills, one in the Senate and one in the House, that will be considered as an adjunct to the wildly successful mobile sports betting industry in the Land of Lincoln.
iGaming Bills Filed
Legislating online casino gambling has been attempted before in Illinois without much success, but that hasn’t stopped Senator Cristina Castro from introducing SB 1963 or Representative Edgar Gonzalez from filing HB 3080. Both bills would legalize online casino gambling and allow the Illinois Gaming Control Board regulatory control.
Online casino gaming companies would be obliged to pay a $250,000 licensing fee and would be taxed at 25% of their adjusted gross revenues. The taxes collected would be sent to the State Gaming Fund.
In the interest of protecting land-based casinos operating in the state, awarding or renewing an iGaming license for a company that has reduced its workforce by 25% or more since February 28, 2020, or since first receiving a license, would be prohibited.
Castro’s bill is currently with a Senate committee, while Gonzalez’s bill sits in front of a House committee. Should either pass muster in the committees and their respective chambers, the law would go into effect immediately once signed by the governor.
Gov on Board
Illinois has eagerly supported the online sports betting market, launched in June 2020, only three months after the state’s first retail sportsbook opened. There are currently 10 mobile sportsbooks operating in Illinois, and its digital sports betting market is among the most lucrative in the nation, becoming the fourth state after New York, New Jersey, and Nevada to surpass $40 billion in sports wagering handle since its launch nearly four years ago.
With the success of mobile sports betting and a looming $3 billion budget deficit, Illinois Governor JB Pritzker has been quoted as saying, “iGaming is worthy of consideration.” Illinois legislators are among an increasing number of lawmakers considering online casino gambling, an industry whose profits and tax collections tower above sports betting.
However, due to fears that 24-hour mobile access to slots and table games could diminish foot traffic at land-based casinos as well as increase gambling addiction, legislators have been reluctant to pass iGaming bills. Only seven states currently offer iGaming, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island.
Concerns Over iGaming Expansion
However, Senator Castro has filed iGaming legislation in the past and said, “In a tough budget year, you’re looking at ways to increase revenue. This is one tool for that. And it’s something that could be more palatable to constituents.”
And she could be right, as the taxes collected would dwarf those of sports betting’s $190 million per annum. It has been projected that taxes on iGaming revenues could swell to $450 million within the first year to as much as $800 million per year thereafter. Although that alone wouldn’t eliminate the $3 billion deficit, it would certainly go a long way toward diminishing it, and lawmakers are taking notice.
