Another iteration of online casino legislation is making the rounds in both of Illinois‘ legislative chambers, but the prospects of either bill being passed during this session remain murky.
Another Bite at the Apple
Illinois legislators have been attempting to legalize iGaming since 2023, and this year is no different. Last year, Representative Edgar González Jr. introduced House Bill 3080, but it ultimately failed to gain traction in the House Gaming Committee before it was returned to the Rules Committee.
However, Gonzalez remains undeterred and has sponsored another online casino bill in the form of HB 4797, also known as the Internet Gaming Act. Meanwhile, a companion bill in the Senate, SB 3723, was introduced last week, a day before Friday’s deadline.
Mobile sports betting has been active in the Land of Lincoln since June 2018, but mobile sportsbooks have railed against the legislation’s several tax increases that have eaten into their bottom line.
Between sports betting and the state’s many casinos, Illinois lawmakers have been amenable to legalizing these forms of gaming, but, as in many states, iGaming has thus far been a bridge too far.
New Measures
The details of Representative Gonzalez’s Internet Gaming Act are as follows:
- A 25% tax rate on iGaming’s adjusted gross revenues
- Any of the state’s 17 land-based casino license holders would be eligible for an iGaming license and could partner with up to three approved third-party platforms.
- A $250,000 prorated license fee is tied to the land-based operator’s retail casino license timeline. Renewals would cost $100,000, but they would preclude any casino that cut 25% of its workforce beginning in February 2020.
- In addition, suppliers would be charged a $75,000 application fee, while internet management service providers would pay $50,000.
The increase in the tax rate, coupled with the penalty on casinos that slash their workforces due to their online casino presence, are two elements of Gonzalez’s most recent iGaming measures that could sway votes in favor of the legislation.
AG Backs iGaming
Although online casino gambling in Illinois is still just a dream, the state’s Attorney General, Kwame Raoul, spoke positively about its prospects at last summer’s National Council of Legislators from Gaming States.
When asked about its viability in the Prairie State, the AG responded that it wasn’t a matter of “if” but “when.”
Brown noted the tax increases on mobile sports betting operators’ adjusted gross revenue and that the state has benefited from the industry’s success. Additional revenue from iGaming would likely dwarf that of sports betting, which will be intriguing to legislators who had been on the fence about voting in favor of it.
Of course, another selling point is the opportunity to implement guardrails for consumers, as well as making responsible gaming resources available to the general public.
Currently, offshore gaming sites, neither licensed nor taxed in the state, provide access to iGaming for any Illinois resident. Although there are several trustworthy offshore companies, there are others that are not, and without doing research, it is impossible for an uninformed user to discern which is which.
