Already home to online sports betting, racetrack sportsbooks, and a lucrative casino market, Illinois is now hoping to build on its impressive $1.76 billion in tax revenue last year by attempting to legalize mobile gambling, too.
At the heart of the proposal, two of the bid’s backers, Rep. Edgar Gonzalez and Sen. Cristina Castro, claim authorizing iGaming and online casino gambling on mobile-orientated devices could generate revenue in excess of $1 billion on its own.
Under the proposed Internet Gaming Act, Illinois casinos would immediately be able to expand their operations online so residents can play all their favorite games, including slots, poker, and roulette, on their phones or tablets.
The move would also introduce a 25% tax incentive for the sector to help recoup the untaxed revenues that are currently lost to gambling on illegal operators’ platforms.
This, in turn, could create thousands of new jobs in the likes of marketing and casino-related roles, like live dealer roles.
Fierce Opposition to the Bill
However, the bill is not without its detractors, as opponents fear mobile gambling will devastate countless small businesses, bars, and restaurants that are heavily dependent on 48,700 in-person video gaming terminals for the ancillary revenue they generate.
They warn that a law change would result in a rapid drop in their footfall traffic, which could be devastating to local firms and vendors who rely on this income.
Countering these concerns, lawmakers point to recent studies conducted in New Jersey. It found online gamblers still flock to brick-and-mortar casinos in increasing numbers in an attempt to minimize any claims that iGaming would cause market cannibalization.
Despite these results, the consensus among casino operators remains divided. While some openly welcome the proposed legislation, others, including Penn Entertainment, argue it compromises the $600 million they’ve already pumped into Illinois’ brick-and-mortar casinos.
They are not alone, as even the Illinois Gaming Board has also expressed concerns, stating they lack the tangible resources needed to oversee such a huge expansion demanded of a state-wide digital gambling roll-out.
That being said, if Illinois’ legislators are successful in weaponizing the Internet Gaming Act to recoup tax revenues lost to out-of-state gambling platforms, the bill could be put into effect immediately.
It will undoubtedly make it the envy of lawmakers in states that are hoping to achieve iGaming approval such as Maryland and New York.