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Lawmakers in Illinois are once again pushing to legalize online gaming, introducing two new bills in the House and Senate.
Senator Cristina Castro and Representative Edgar Gonzalez are leading this renewed effort after their previous two attempts fell short in the last legislative session. However, things are looking a bit better this time, as Governor JB Pritzker has expressed his willingness to explore online gaming as a potential revenue source to tackle the state’s budget deficit.
House Bill 3080 and Senate Bill 1963 share great similarities with the previous two iterations. The Illinois Gaming Control Board would have regulatory control over licensed operators, who would be allowed to manage up to three digital platforms(skins).
The bill proposes a $250,000 licensing fee and imposes a 25% tax on operators’ adjusted gross revenue, marking a 10% increase from the previous proposal. These revenues will go into the State Gaming Fund.
A key proponent of this bill is the workforce retention requirement. To maintain their licenses, operators must not reduce their workforce by 25% or more since February 28, 2020. This provision aims to alleviate concerns from labor unions and hospitality workers about the potential job losses that might arise due to the expansion of online gaming.
Additionally, the proposals prioritize diversity and inclusion. Operators would need to submit annual reports on their efforts to work with minority-owned, women-owned, and veteran-owned businesses. They would also be required to hold public workshops and job fairs focused on promoting supplier diversity, reflecting the state’s commitment to equity in the gaming industry.
VLT Operators Pose Significant Hurdle
Despite the numerous financial benefits the Internet Gaming Act would bring to the state, it’s still expected to face strong opposition, mainly from video lottery operators. Illinois boasts the most extensive legal video lottery terminal network in the country, with over 8,500 licensees and 48,000 terminals statewide.
These slot-like machines can be found in hundreds of bars, restaurants, and small businesses across the state and generate revenue for both gaming operators and business owners.
It’s also the biggest source of tax revenue in Illinois, generating over $1 billion for the state and local municipalities in 2024 alone. In contrast, sports betting contributed $244.2 million in tax revenue for the same year, while the state’s 16 casinos collectively generated $345.2 million.
VLT operators have historically been against a regulated online gaming market, fearing loss of revenue. Given their strong lobbying presence in the state and the significant impact of their machines on numerous business owners, Gonzalez and Castro’s bills will most likely face serious challenges.
However, Illinois faces a $3 billion budget deficit, which intensifies the pressure on lawmakers to find new revenue sources. Supporters of the bill argue that online gaming could bring much-needed relief, and with provisions made to protect workers and promote diversity, it could become a truly amazing opportunity for the state.
Online sports betting is currently legal in the Prairie State, but operators must partner with established gaming entities to obtain a license. If the fresh Internet Gaming Act passes, major gaming brands could enter the market by collaborating with any of the more than a dozen casinos in the state.
HB 3080 is currently being reviewed by the House Rules Committee, while SB 1963 is yet to start its journey.
Source: Next.io
