Illinois is once again considering online casino legalization via two bills, one in the House and the other in the Senate.
Illinois lawmakers have once again introduced bills to legalise online casino in the state, continuing a multi-year effort that has yet to gain legislative traction.
The push follows Governor JB Pritzker’s recent indication that he is open to considering online gaming as a potential revenue source to help address Illinois’ significant budget deficit.
This marks the third consecutive year that legislation has been proposed, with the latest versions being House Bill 3080 (HB 3080) and Senate Bill 1963 (SB 1963).
The bills, introduced by Rep. Edgar González, Jr. and Sen. Cristina Castro, respectively, are nearly identical to previous iterations.
They propose allowing existing gaming licence holders to operate up to three online casino skins and set a tax rate of 25% on adjusted iGaming revenue.
Under the proposal, online casinos in Illinois could offer a variety of gambling options, including online poker, slots, table games and live dealer games.
To secure their licences, gaming operators would be required to meet a workforce retention requirement. If a licensee’s workforce declines by 25% or more between renewal periods, the bill stipulates that their license would not be renewed.
This provision appears to be aimed at addressing concerns from labour unions and hospitality industry workers who fear that the expansion of online gambling could negatively impact jobs in the state’s land-based casino and hospitality industries.
The tax revenue generated from online gaming under the bill would be allocated to the State Gaming Fund. This fund is responsible for covering gambling regulation costs in Illinois and also contributes to state education funding.
The House Rules Committee is reviewing HB 3080; SB 1963 is still waiting to take its first step.
VLT operators may stand in the way
Despite these provisions, the legislation faces considerable hurdles. The most significant challenge comes from Illinois’ established video lottery terminal (VLT) industry.
Bars, restaurants, and other small businesses across the state operate thousands of VLTs, which function similarly to slot machines and generate substantial revenue for both business owners and gaming operators.
These operators have a powerful lobbying presence in the state and have historically opposed online casino legalisation, arguing that it could divert revenue away from physical gaming locations.
The introduction of the bills follows Governor Pritzker’s mention of online gaming as a potential budget solution in January.
Illinois is facing a $3bn budget deficit, and supporters of iGaming legalisation argue that taxing online casinos could provide a reliable revenue stream to help address the shortfall.
Sen. Castro has specifically framed online casino revenue as a way to help close this budget gap.
Illinois currently allows online sports betting, using a similar model to what is proposed for online casinos. In that system, licence holders can operate sports betting under their own brand or through partnerships with established gaming operators.
If online casino legalisation follows a similar structure, major gaming brands could enter the market through partnerships with existing Illinois casino operators.
The previous two attempts to pass similar legislation did not gain significant traction, and opposition from VLT operators and other gaming industry stakeholders could once again present a major obstacle.
However, the urgency of Illinois’ financial situation and the governor’s openness to the idea could provide the momentum needed for lawmakers to push iGaming legalisation further in the legislative process this time around.