Senator Cristina Castro was the first to file an online casino gambling bill, SB 1963, back in February, but Representative Edgar Gonzales Jr. has also added his measure, House Bill 3080, and Illinois legislators are contemplating both iGaming bills as the session closes.
Last Minute Discussions
Representative Bob Rita has been a champion of gaming in Illinois, and he believes that iGaming will have an opportunity to pass with only days remaining. Proponents argue that the state desperately needs another revenue stream to bridge the deficit, while others believe it will take away the business garnered from the local VGTs (video gaming terminals).
Illinois is certainly not averse to gambling, as evidenced by the $2 billion in state tax revenues from all sources of wagering, including the lottery, in the last fiscal year. But Representative Gonzalez warned that the state could face a major downfall as it did in 2020 when President Trump was finishing his first term.
“If we had something like iGaming, we would have still had a financial fallback in spite of gross negligence by the first Trump administration,” Gonzalez said last week at a Capitol hearing on his proposal to legalize internet gambling. “Illinois is gambling with its financial future by delaying the adoption of iGaming.”
James Hartmann, a lobbyist for sports betting giant FanDuel, was one of the chief architects of mobile sports betting in Illinois and is also a supporter of Gonzalez’s bill. He was at the hearing to add his own argument in support of iGaming in the Prairie State.
“Whether or not you choose to pass legislation legalizing iGaming, it is already here,” James Hartmann, a lobbyist for sports betting giant FanDuel, told the panel. “Right now, you can take out your phone and, in five minutes, be gambling real money slot machines from the app store, unregulated and untaxed.”
Casinos’ Object
Illinois land-based casinos are not happy about the possibility of another competitor entering the market. Jay Keller, a lobbyist for Penn Entertainment Inc., reported that his company spent $600 million rehabbing and updating its casinos in Aurora, Joliet and Alton. Keller said the investment was “made with the understanding that Illinois’ gaming landscape would remain stable,” he told lawmakers.
Keller added, “The economic impact of iGaming is uncertain, but the potential negative consequences are clear: The proliferation of online gaming could reduce in-person casino traffic, threatening jobs, lowering the economic benefits to local communities, and ultimately discouraging future investments in the state.”
Marc Poulos, the executive director of the labor-management group for the International Union of Operating Engineers Local 150, believes that iGaming could negatively impact 150 union jobs that are linked to funding for state infrastructure projects.
“Every study that we have looked at shows that iGaming would cannibalize existing gaming positions, mainly video gaming terminals,” Poulos told the panel.
Too Easy, Too Often, Too Risky
One of the major obstacles that iGaming has encountered is not only fears of cannibalizing land-based casino business but also concerns over addictive behavior.
Ivan Fernandez, director of the Illinois Gaming Machine Operators Association, which represents the VGT industry, warned that allowing casino access to everyone 21 and over is a big reason why gambling addiction will spike in the state.
“They declined to authorize putting online casino gambling at people’s fingertips on millions of cellphones, tablets, and computers available 24 hours a day, seven days a week, when people are most vulnerable,” Fernandez said. “When they’re alone or in isolation and within the close reach of minors, without regard for local authority or any reasonable time or spending limits.”
