Online Casino Legalization Effort Returns to Illinois

Article by : Erik Gibbs Feb 5, 2024

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Illinois legislators are once again venturing into the realm of online casinos, hoping to bring a digital gaming frontier to the Land of Lincoln. The legislative endeavor, embodied in House Bill 2239, has surfaced in the state’s House, now finding a home in the esteemed Gaming Committee.

Originally introduced in 2023, this proposed legislation, championed by Representative Edgar Gonzalez, Jr., seeks to birth the Internet Gaming Act, promising a novel revenue channel for Illinois and its local governance.

This legislative reincarnation, part of the 2024 agenda owing to Illinois’ biennial legislative sessions, aspires to greenlight regulated iGaming for operators granted licenses or partnered service providers.

HB 2239 advocates a nuanced approach, where an operator, securing a license for a fee of $250,000, can offer up to three gaming skins. They have the ability to renew the skins for $100,000 at the end each period.

Against the backdrop of a thriving regulated iGaming market, which amassed gross gaming revenue of $557.2 million in November 2023, Illinois positions itself on the precipice of a potential digital gaming renaissance. In Illinois, individuals aged 21 and above have the green light to engage in wagering activities as per the provisions of HB 2239, accompanied by a 15% privilege tax on bets. This tax harvest is earmarked for the Illinois Gaming Fund, signifying a strategic financial allocation.

A notable facet of this legislative initiative is its emphasis on responsible gambling within the state. Operators are mandated to incorporate signage on their platforms, acting as signs directing users towards gambling problem services, thereby fostering a safer gaming environment.

HB 2239 emerges as the latest addition to an expanding repertoire of iGaming-centric bills that have found their way into the legislative discourse in Illinois. Last month, Senate Bill 1656 underwent a reshuffling, finding its new abode in the House’s Executive Committee after its initial introduction back in February 2023.

Crafted by Senator Cristina Castro, SB 1656 treads a familiar path akin to its legislative predecessors. The bill orchestrates a tax framework, extracting 15% from the adjusted gross revenue while extending the courtesy of promotional credit deductions to operators.

Noteworthy in its provisions is the call for a mandatory self-exclusion list, compelling operators to comply with this crucial facet that is becoming a primary factor in the licensing approvals of online operators.

SB 1656 marks a persistent pursuit by Castro, echoing a prior attempt in 2021 that fell short in bringing the realm of iGaming to fruition in Illinois. The legislative landscape continues to evolve, with each endeavor contributing to the ongoing narrative of digital wagering regulation in the state.