Lawmakers in Illinois are considering the legalisation of iGaming; a move that could see the state join eight others in allowing online casino gaming.
Supporters argue that the expansion could generate significant tax revenue, while opponents warn it could disrupt the existing gambling industry and increase problem gambling rates.
With gambling tax revenues surpassing $2bn in the last fiscal year, Illinois is looking for new ways to boost state income, particularly in light of potential budget shortfalls.
Edgar Gonzalez, State Representative (D-Chicago), is one of the leading voices pushing for legalisation, believing that iGaming could provide a stable financial safety net, especially in times of economic uncertainty.
“Illinois is gambling with its financial future by delaying the adoption of iGaming. If we had something like iGaming during the pandemic, we would have had a financial fallback.”
Revenue potential vs. industry disruption
Proponents of Gonzalez’s House Bill 3080 argue that iGaming is already happening in Illinois, albeit illegally, through offshore operators that do not contribute tax revenue or provide consumer protections.
James Hartmann, a lobbyist for FanDuel, says: “Whether or not you choose to pass legislation legalising iGaming, it is already here.
“Right now, you can take out your phone and be gambling real money on slot machines within five minutes, but none of that is being taxed or regulated.”
A study commissioned by the Sports Betting Alliance, which represents major sportsbooks including FanDuel, DraftKings, BetMGM and Caesars, suggests that legal iGaming could bring in between $775m and $1bn annually in state tax revenue. Advocates argue that this windfall could help address Illinois’ looming budget deficit without the need for new general taxation.
Concerns over job losses and addiction
The Bill has drawn strong opposition from casino operators, video gambling terminal (VGT) businesses and hospitality industry representatives, who fear that online gambling could divert revenue away from land-based establishments.
Jay Keller, a lobbyist for Penn Entertainment, says: “We have spent over $600m enhancing and expanding our casinos in Illinois.
“That investment was made with the understanding that the gaming landscape would remain stable. If iGaming is legalised, it could pull business away from physical casinos, threatening jobs and local economic benefits.”
A further study, commissioned by the National Association Against iGaming, estimated that legalising internet gambling could cost Illinois 4,733 jobs in the casino and hospitality sectors, along with a $252.5m decline in direct casino tax revenue.
Ivan Fernandez, Director of the Illinois Gaming Machine Operators Association, also raised concerns during the hearing, warning that iGaming presents a greater risk for gambling addiction than traditional, venue-based gambling.
“Unlike casino gaming or video gambling terminals, iGaming is available 24/7, directly on people’s phones and computers, with little oversight,” he stated.
Regulatory and legislative challenges
The Illinois Gaming Board (IGB) has also voiced concerns, stating that the agency is already struggling to keep up with existing regulatory duties. Lawmakers have yet to address issues such as the proliferation of ‘sweepstakes’ machines, which currently operate in a legal grey area.
Dan Didech, House Gaming Committee Chair (D-Buffalo Grove), concluded: “The concerns raised by opponents are well-founded, and any move to legalise iGaming must take into account the broader impact on the industry, problem gambling and regulatory enforcement.”
Despite the push for new legislation, no vote was taken at the hearing, as discussions remain in the preliminary stages. However, with both financial and regulatory pressures mounting, the future of iGaming in Illinois will remain a hotly debated issue over the coming months.
