Illinois Eyes Online Casino Gold Rush
Fresh legislation hitting both chambers of the Illinois statehouse could pave the way for legalized online casinos in the state.
State Governor Pritzker recently suggested igaming as a possible way to address the state’s budget deficit. That currently sits at $3 billion, which is a dark cloud over the state legislators and yet could be a window of opportunity for the igaming industry. However, there is a major stumbling block, as Illinois’ powerful Video Gaming Terminal operators are ready to defend their turf.
Legislative veterans Cristina Castro and Edgar Gonzalez are back for round two with the Internet Gaming Act after their first attempt to legalize online gambling failed to pass into law. They have now submitted a House Bill (HB 3080) and a Senate Bill (SB 1963), with the former now with the House’s Rules Committee, and the Senate Bill is pending assignment.
This time, they have proposed a 25% tax rate, up from their previous 15% pitch, which would go to the State Gaming Fund. But in a state where corner bar gaming machines are such a big business—$884.2 million in 2024 alone—the representatives face substantial opposition.
Three Bands for a Quarter Million
Castro and Gonzalez have presented a simple blueprint for legalized online gambling. The $250,000 buy-in gives the chance to launch three brands.
The main stumbling block is Illinois’ current gambling industry—nearly 49,000 video gaming terminals scattered across 8,700 locations make it America’s undisputed VGT king. Illinois has already legalized sports betting, too, and is the second-largest market in the USA.
Senator Lakesia Collins is simultaneously pushing to legitimize daily fantasy sports. For a state that’s already bet big on gambling, these moves could either cement Illinois as America’s midwest gaming hub, or spark a turf war between old-school operators and digital newcomers.
As these bills wind through committee, one thing’s clear – Illinois isn’t just playing games anymore. The question isn’t if online casinos are coming to the Land of Lincoln, but when?
America’s Regulatory Landscape is Changing
There’s a substantial push to legislated and legalize the online casino and sports betting industries in a number of states. The National Council of Legislators From Gaming States recently revealed draft legislation that could serve as a blueprint for State legislators who want to introduce and legalize online gambling.
Aside from Illinois, New York, Maryland, Indiana, Ohio, Louisiana, and New Hampshire have all evaluated online casinos with a bid to legalize them within their State lines in recent times. That would be a massive boost for the industry that is already booming,
The US market is closing the gap with the UK in terms of online casino revenue, even though it’s only legal in seven states. Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, West Virginia, and Rhode Island should produce $7.8 billion of revenue in 2025, according to one recent study. Adding another seven States to the mix could put the US at the top of the revenue charts and completely change the gaming industry.
In its draft legislation, the NCLGS recommended a blanket ban on Sweepstakes Casinos, which have exploded in popularity on US soil. These casinos fall under sweepstakes laws originally designed for lotteries and giveaways, and the NCLGS wants to close that loophole and replace them with properly regulated online casinos that can be accessed across the United States.
