Exploring the Potential for Online Casino Games in Illinois

Illinois residents could soon enjoy online casino games, including slots and blackjack, as lawmakers consider legalizing internet-based gambling. This move, already implemented in several states, has proven to generate substantial tax revenue. However, concerns have been raised about its potential impact on the state’s robust video gaming terminal (VGT) market and the possibility of increased gambling addiction.

Evolution of Gambling in Illinois

Historically, placing a legal bet in Illinois required visits to racetracks. Riverboat casinos later entered the scene, eventually finding permanent locations. Over time, slot machines proliferated in bars and restaurants statewide. Mobile sports betting, a recent development, now allows gambling from virtually anywhere with a cellular connection.

If lawmakers move forward, Illinois could complete its gambling expansion by allowing internet-based casino games, offering residents access to a wide array of options like poker and blackjack directly from their smartphones.

The gambling industry is expected to advocate strongly for internet gaming, known as iGaming, during the next legislative session in Springfield. This initiative aims to bring state-regulated casino games to mobile platforms, generating significant revenue for the state.

State Senator Cristina Castro, a Democrat from Elgin who has introduced iGaming legislation previously, noted the potential revenue benefits, stating, “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.”

Revenue Projections and Concerns

Proponents estimate that legalizing online casino games could yield $450 million in new tax revenue within its first year, potentially reaching $800 million annually. These figures are attractive to state leaders grappling with a $3 billion budget deficit.

However, critics caution against the possible downsides. Representative John Cabello, a Republican from Machesney Park, expressed concerns about the competition iGaming could pose to establishments relying on video gaming terminals. “When you start letting people play from home, do you think they’re going to go to those places and spend money?” Cabello questioned, emphasizing potential revenue losses for businesses hosting VGTs.

Seven states have legalized internet gambling, experiencing notable tax gains and rising interest from players. For example, New Jersey casinos reported a record $214 million in gross online gaming revenue in November, translating to approximately $32 million in state taxes. Pennsylvania, which imposes higher taxes on iGaming, collected almost $86 million in taxes on $200 million in revenue.

In Illinois, gaming taxes have become a crucial part of state revenue. In the most recent fiscal year, Illinois generated $2.1 billion in gaming tax revenue, derived from various sources including $158 million from casinos, $190 million from sports betting, $848 million from VGTs, and $886 million from lottery sales.

Political Momentum and Challenges

Governor J.B. Pritzker has shown interest in the iGaming proposal, describing it as “worthy of consideration.” His istration has already overseen a comprehensive gambling expansion, which introduced six new casinos, broadened VGT operations, and launched the state’s sports betting industry. However, gaining legislative approval for this proposal may require negotiations, as stakeholders with differing perspectives remain vocal about the implications of internet gambling.

The debate continues as state officials prepare for the next budget cycle, with the governor’s office planning to present its fiscal proposal in February. As the push for iGaming gains momentum, its potential impact on Illinois’ gambling landscape remains a focal point of discussion.

Source:

”Illinois lawmakers could add internet gambling to state’s bevy of betting options”, chicago.suntimes.com, December 28, 2024.