Illinois Online Casino Bills Stall in Committee
Illinois’ bid to legalize online casinos remains on hold, with House Bill 3080 and its Senate counterpart stuck in committee limbo. Introduced by Representative Edgar Gonzalez and Senator Cristina Castro, respectively, bills mark the state’s third attempt in three years to bring iGaming into the fold.
The Case for Legalization
Proponents see iGaming as a fiscal lifeline amid looming budget deficits and economic uncertainty. A 2024 Sports Betting Alliance report, backed by operators like FanDuel and DraftKings, estimates Illinois could reap $775 million in tax revenue over five years at a 25% rate, potentially hitting $1 billion annually if aligned with the state’s higher sports betting and brick-and-mortar casino tax rates.
FanDuel’s James Hartmann argues that online gambling already thrives illegally in Illinois, draining untaxed revenue to offshore sites. Legalizing it, he says, would introduce consumer protections, responsible gaming tools, and a taxable revenue stream.
Rep. Gonzalez frames it as a matter of accountability, warning that Illinois is “playing with fire” by ignoring an unregulated market where citizens already wager online.
Resistance from Traditional Players
Opposition, however, runs deep. Critics fear iGaming could cannibalize revenue from Illinois’ 15 brick-and-mortar casinos and video gaming terminals (VGTs), which dot bars and truck stops statewide.
The Illinois Gaming Commission has tracked nine years of declining revenue at legacy riverboat casinos, and industry voices like Jay Keller of Penn Entertainment Inc., which sank $600 million into recent casino expansions, warn that online gambling could undermine those investments. Keller contends it risks destabilizing the state’s gaming ecosystem, deterring future projects, and cutting local economic benefits.
VGT owners and hospitality leaders echo the concern, with Ivan Fernandez of the Illinois Gaming Machine Operators Association highlighting iGaming’s heightened addiction potential due to its 24/7 accessibility. The Illinois Gaming Board adds a regulatory wrinkle, expressing doubts about its capacity to oversee online casinos given existing challenges with land-based operations and unresolved “lottery slot” loopholes akin to VGTs. Labor unions split on the issue. IBEW Local 134 backs legalization, while IUOE Local 150 opposes it, citing threats to infrastructure funding tied to current gaming taxes.
Recommended