Illinois to Take Another Run at iGaming Legislation

In line with neighboring Indiana, Illinois lawmakers are poised to make another big run at iGaming legislation. This will be the fifth attempt in the last four years to do so. This time, the effort is being motivated by Governor J.B. Pritzker, who has gone on record to say he would support such legislation given the state's fiscal situation.

Carrying the ball for this iteration will be Rep. Edgar González, Jr. and Sen. Cristina Castro, trying to get iGaming legislation passed for the third time. They will be presenting identical bills in their respective chambers with Gonzalez going to the House floor with HB 3080 and Castro going to the Senate with SB 1963.

It's noteworthy that HB 3080 is currently under consideration in committee while SB 1963 is awaiting a committee assignment.

Bill Details

Since each of these bills is identical, the details in each bill are identical. Here is a look at a few of the bill's key provisions:

- Each licensee would be permitted to run three (3) skins or separate online casino operations.

- The tax rate on gross casino gambling revenue would be pegged at 25%

- An iGaming license would permit the holder to offer online slots, online traditional and live table games, and online poker.

- Licensing renewal would be predicated on the licensed retail casino maintaining certain levels of employment.

- Tax revenue would go into a state gaming fund to be used to cover regulatory expenses and online gambling education.

- Licensed operators would be permitted to use a proprietary software casino platform or be allowed to partner with outside software developers.

Passing iGamig Legislation Still Faces Challenges

Citing a potential $3 billion state deficit, Gov. Pritzker has stated he would consider supporting iGaming legislation to help clear any deficits. However, he did fall short of saying he would sign such a bill. Of course, the devil will be in the details.

Meanwhile, there will be opposition to any iGaming bill that would detract from other interested parties. The main source of opposition is likely to come from companies and small businesses that are connected to the state's regulated video lottery terminal market. There is a long list of restaurants and bars that host such terminals. Their motivation for doing so is getting a portion of the revenue. They have gone so far as to form a strong lobby to stop iGaming bills from passing out of fear it will directly impact the amount of terminal revenue they are receiving.

In the past, casino worker labor unions have been a source of iGaming opposition. However, those concerns might be somewhat mitigated by the bill provision that addressed the loss of employment at the retail casino level.

Given the current online gambling environment in the U.S., there is a reasonable chance that iGaming access might become a reality in Illinois. Certainly, it's something that has significant support among residents. As is the case in other states, only time will tell which direction this is headed.