Video Slots Find the Most Success in Illinois Casinos

Article by : Erik Gibbs Oct 5, 2023

• 
• 

Gamblers in Illinois increasingly favour video slot machines over traditional options like Blackjack tables and horse racetracks, as per a report from the Illinois Commission on Government Forecasting and Accountability, a bipartisan organization providing economic analysis for the state legislature.

Although the lottery remains the state’s largest source of wagering revenue, video terminals in various establishments are poised to challenge its top position.

Data shows that Illinois’ tax revenue from gaming reached a record of nearly $2 billion in the fiscal year ending on June 30, the highest in nearly five decades. Currently, video gaming contributes approximately 41% of wagering revenue, while the lottery accounts for nearly 44%.

The report highlights that revenue from video slot machines experienced the most significant growth in the past year, surging by 6.8% to $814 million, while lottery revenue increased by 4.7% to $872 million.

According to the report, video gaming in Illinois has consistently seen growth since its introduction to the state market.

Illinois now boasts over 45,000 video gaming terminals, surpassing initial estimates of around 20,000. The report attributes this to the state’s overwhelming popularity of video gaming.

Future growth in Illinois’ gaming revenue is expected to rely more on the opening of new casinos and the installation of additional video terminals than on the average amount wagered at each site, according to Lucy Dadayan, Principal Research Associate at the Urban Institute Tax Policy Center.

Recent developments include Bally’s Corp. opening a temporary casino in Chicago and the launch of Circa Sports’ mobile app in Illinois, along with its brick-and-mortar wagering service in suburban Waukegan.

The expansion of sports betting in Illinois has also contributed to increased tax revenue, from $7 million in fiscal 2020 to $143 million in the last fiscal year.

Despite these developments, the report suggests that revenue growth may be modest with the growing number of gambling options in Illinois and competition from neighbouring states.

Other states in the US have expanded gambling as a revenue source, albeit a relatively small one. Still, caution is advised in relying on gaming for ongoing expenditures due to its cyclical nature and dependence on discretionary spending rather than essential needs.