Illinois’ gambling industry could be set for a boost if House Bill 3080 and Senate Bill 1963 are successful in their attempts to legalize online casino gambling in the state. This is the second time that Illinois lawmakers are considering legislative changes to allow online casino gambling, and following the success of its online sports industry, many believe the time is ripe for change.

Current Illinois regulations prohibit the operation of online casino sites within the state. At present, citizens of legal age must explore offshore casino sites. Consumers can discover licensed online casinos operating from external jurisdictions, providing players with security, a choice of games, enticing bonuses, and a variety of payment methods. (Source: https://www.pokerstrategy.com/online-casinos/)

While this provides US bettors with greater freedom, it does limit the control states have over the industry, and also means that valuable revenue streams are being directed out of the country. The state has already seen considerable revenue since passing the Sports Wagering Act in 2019, with an annual GGR of $1.23 billion and taxes of $279.3 million. That legislative amendment resulted in 9 online sports betting operators and 15 land-based alternatives.

Now, SB 1963 and HB 3080 have the backing of Representative Edgar Gonzalez and Senator Christina Castro, with the proposal providing plans for a comprehensive regulatory framework that would allow existing casino operators to launch multiple online casino brands. A proposed tax rate of 25% is an increase from the previously suggested 15%, which would have brought it in line with sports betting.

The state currently generates approximately $1.2 billion per year across all licensed gambling markets, including its 15 commercial casinos,  and retail and mobile sports betting markets. More than 28,500 jobs are supported by the gambling industry in Illinois, with an annual economic impact of $7 billion.

The popularity of offshore casinos can be used by campaigners to try and effect change, with consumers able to access casino sites easily. Legislative changes give the state the power to draw up a regulatory framework that drives growth and protects consumers. Another reason the proposal has a good chance of passing this time around is because of a projected budget shortfall for 2026.

The $3.2 billion shortfall is something that is putting pressure on the Illinois government, and the legalization of online casinos is seen as an excellent solution. As well as providing additional tax revenue, new operators would also pay license fees, and an increase in employment would also be beneficial.

Illinois uses gaming tax revenue to fund a variety of educational programs and infrastructure, as well as criminal justice initiatives. Gaming tax rates on electronic gaming devices are currently determined by the revenue they draw in, with a 15% rate applied to revenue up to $25 million. Revenue of between $25 million and $50 million is subject to a 22.5% tax rate, continuing in 5% increments for every additional $25 million until it reaches $100 million.

Revenue of between $100 million and $150 million is taxed at 37.5%, $150 million to $200 million is taxed at 45%, and a rate of 50% applies to all electronic gaming revenue that exceeds $200 million.

Opponents have argued that the legalization of online casino betting in Illinois would be detrimental to the existing casino industry, with tax revenue and jobs at stake. However, studies funded by gaming operators in the US have shown that retail casinos have seen growth in states where online casino gambling is legal.

It remains to be seen whether the bill will get enough support to provide Illinois with a legal online casino industry and the additional tax revenue it will create.