Mobile sports betting has been a rousing success in the Land of Lincoln, but lawmakers faced with a substantial budget deficit are considering online casino gambling legislation to mitigate that shortfall.
iGaming: “Worthy of Consideration”
The government’s insatiable appetite for money has reared its head yet again, and this time it is Illinois that is considering adding another revenue source to alleviate its budget deficit. Illinois launched sports betting in June 2020, and the legislature subsequently increased the rate from a flat 15% tax on adjusted gross revenues for mobile sportsbooks to a staggered rate ranging from 20% to 40% in June 2024.
Despite the increase, the state is seeking additional ways to fund the government as it faces a $3 billion deficit. Governor JB Pritzker has been quoted as saying, “iGaming is worthy of consideration,” and it has been discussed with greater fervor than ever to address the budget shortfall. Revenue reports across the seven states that currently offer online casino gaming reveal the profits tower above those of mobile sports betting, and that has plenty of states like Illinois considering iGaming as a viable option.
“In a tough budget year, you’re looking at ways to increase revenue. This is one tool for that,” said state Sen. Cristina Castro, an Elgin Democrat who has introduced iGaming bills that previously fell short. “And it’s something that could be more palatable to constituents.”
Rolling the Dice
The reluctance by many lawmakers to explore online casino gaming has been primarily two-fold.
First, any land-based casino operators are generally unsupportive of iGaming, claiming it will cannibalize their profits and jeopardize the job security of thousands of casino workers. That is a very real concern for lawmakers as well, who realize those operators pay hefty taxes on their own revenues and are a boon to local economies.
Lawmakers have also expressed trepidation concerning the addictive nature of having a casino in the palm of one’s hand at any time, day or night. Anti-gambling forces have repeatedly stressed that iGaming could prove detrimental to those vulnerable to addiction.
“This literally is the equivalent of gambling fentanyl,” said Les Bernal, national director of the Stop Predatory Gambling advocacy group. “This is putting gambling fentanyl on every smartphone, in every living room, every dorm room, and every office in the state of Illinois that has an internet connection.”
Nevertheless, the promise of debt relief and the desire of many consumers who want access to iGaming is starting to gain traction, and many industry insiders believe 2025 will be much more receptive to online casino gambling than ever before.
Illinois’ iGaming revenue projections forecast $450 million in new tax revenue within a year and eventually delivering as much as $800 million per year compared to the $190 million derived from sports betting in the latest fiscal year.
Sports Betting Alliance president Jeremy Kudon stated, “All of this iGaming already exists in Illinois. All we’re trying to do is legalize, regulate, and tax it.”
