Illinois iGaming Effort Stalls, Won’t Return Until Next Year

Article by : Erik Gibbs May 30, 2024

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The recent legislative session in Illinois ended with two bills aimed at legalizing online casinos failing to advance.

House Bill 2239, introduced by State Rep. Edgar Gonzalez Jr., and Senate Bill 1565, sponsored by State Sen. Cristina Castro, did not move past the committee process and thus did not reach the floor for debate or a vote.

The subcommittee on Gaming, Wagering, and Racing in the Illinois State Senate, and the Gaming Committee in the Illinois State House, both effectively shelved the proposals.

The bills included provisions for a 15% tax on revenue generated from online casino operators, highlighting the potential for new tax revenue as a primary reason for support. However, a consensus could not be reached to push either bill to a vote.

As a result, the prospect of legalizing online casinos in Illinois faces a significant delay. The earliest reconsideration possible is in January 2025, at the start of the new legislative biennium. Rep. Gonzalez and Sen. Castro would need to reintroduce new bills in the next session.

Currently, only six states in the US have active iGaming markets, while more than 30 states have legalized sports betting. Online casinos have faced more controversy compared to sportsbooks, often due to opposition from brick-and-mortar casinos.

In some states, these physical establishments have lobbied against online casinos or delayed their progress, concerned about licensing issues and their roles in the new online gaming market.

Michigan, a neighboring state, offers a comparative context where legal online casinos have been integrated without a negative impact on retail casino revenue.

Studies indicate that Michigan’s brick-and-mortar casinos are still striving to return to their pre-COVID-19 revenue levels, suggesting that the presence of online gaming has not undermined their recovery efforts.

Rep. Gonzalez and Sen. Castro have previously introduced iGaming bills numerous times, but each attempt has encountered roadblocks in the form of committee inaction.

The proposed bills included provisions allowing licensees to operate up to three “skins” for online casinos, reflecting a flexible approach to online gaming operations. The continuation of these efforts reflects a persistent drive to expand the state’s gaming landscape despite the setbacks experienced in the recent legislative session.