Illinois Eyes Online Casino Gaming Expansion with New Legislation
Illinois is poised to explore the realm of online casino gaming as House Bill 2239, introduced by State Rep. Edgar Gonzalez, gains traction in the House Gaming Committee. This move comes as Illinois, known for its robust gaming scene and legal sports betting since 2020, seeks to expand its gambling offerings further. The bill, a companion to Senate Bill 1656 by Sen. Cristina Castro, aims to build on the state’s already extensive gambling infrastructure, which includes a vast network of video gaming terminals (VGTs) contributing significantly to state and local tax revenues.
A Second Attempt at iGaming Legislation
After an initial setback where both the House and Senate bills failed to progress beyond their first readings in the previous General Assembly session, these renewed efforts signal a strong intent to bring internet casino gaming to the forefront of Illinois’ gaming landscape. The state’s current gaming expansion, which includes the development of new brick-and-mortar casino locations, sets a promising backdrop for the potential introduction of online casinos.
The Proposal: Internet Casino Gaming in Illinois
Gonzalez’s bill proposes a framework for online casino gaming that mirrors the structure established for sports betting, including a 15% state tax on adjusted gross revenue and a $250,000 initial license fee.
Notably, the bill would allow internet gaming licensees to operate up to three individually branded internet skins, offering a broader online presence than the current single-skin allowance for sports wagering licensees. This approach aims to foster a competitive and diverse online casino market in Illinois.
Impact on the Video Gaming Terminal Network
The introduction of online casino gaming could have implications for Illinois’ extensive VGT network, which spans over 47,000 terminals across nearly 8,500 establishments. The VGTs, a significant source of gaming tax revenue for the state and local municipalities, enjoy strong support from the food service industry, which benefits from a share of the revenue. The potential shift towards online gaming may raise concerns among stakeholders reliant on VGT income, highlighting the need for careful consideration of the bill’s impact on existing gaming operations.
The push for online casino gaming also presents political challenges, particularly for Chicago Mayor Brandon Johnson, who has shown support for VGTs. The ongoing development of Bally’s $1.7 billion casino in Chicago, along with the city’s current ban on VGTs, adds complexity to the discussion around internet casino gaming and its integration with the city’s broader gaming strategy.
Commentary: Navigating the Future of Gaming in Illinois
As Illinois contemplates the introduction of online casino gaming, the state stands at a crossroads between expanding its gaming offerings and balancing the interests of existing stakeholders. The potential for increased tax revenue and a more diversified gaming market must be weighed against the concerns of VGT operators and the food service industry.
Moreover, the political landscape, particularly in Chicago, underscores the need for a nuanced approach to integrating new forms of gaming within the existing framework. As discussions progress, the outcome of House Bill 2239 could significantly shape the future of gaming in Illinois, marking a pivotal moment in the state’s ongoing journey to adapt to the evolving gambling industry.
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