Lawmakers in Illinois are making another attempt to legalize online casinos in the state. House Bill 3080 and Senate Bill 1963, which are new versions of House Bill 2239 and Senate Bill 1565, are being reintroduced by State Rep. Edgar Gonzalez Jr. and Senator Cristina Castro. These bills are aimed at ensuring that online casinos get legalized in Illinois through the proposed Internet Gaming Act.
Both lawmakers had submitted HB 2239 and SB 1565 in 2023, but the bills were rejected before even getting to the House Committee. However, both lawmakers are pushing the bill this time with the hope that casino operations in Illinois can be expanded by creating a framework that accommodates online casinos. Many regular casino players in the state have already turned their attention to some of the Ideal Illinois online casinos, and with the growth of online casinos worldwide, it’s about time that they get licenses to operate locally.
Although state regulations for online casinos are still a work in progress, these online casinos are safe, offshore platforms with licenses where players can get access to good gaming libraries. The platforms also have a wide player base, not just in Illinois but also across other regions, which makes the gaming experience very competitive. Players can also make transactions from both traditional banking platforms and from crypto wallets without the fear of hacks or delay. These offshore sites provide a way for players to enjoy their favorite casino games while lawmakers work to legalize online gaming in the state.
What Does The Bill Propose
The bill proposes that operators will pay up to $25,000 to obtain a license, which will allow them to offer up to three separate platforms, also known as skins. The bill also states that there would be a 25% tax on the adjusted gross revenue of online casinos, with all tax revenues going directly into Illinois’ Gaming Fund. The funds will contribute to the state’s education fund while also covering the costs of gambling regulations.
There is also a provision in the bill that stops the gambling board from giving licences to companies that have reduced their staff by about 25% in the past 5 years. This clause, which extends to retail stores, is put in the bill to help address the concerns of labor unions workers over fears that online gambling could affect the job security of workers in land-based casinos.
With the concerns of union workers in mind, the bill also put plans in place to ensure that companies promote diversity in the gaming industry. Some of the measures to achieve this include mandating all licensed operators to provide annual Diversity, Equity, and Inclusion (DEI) reports. In these reports, companies are expected to provide details on amounts spent on businesses owned by veterans, minorities, women, small enterprises, and individuals with disabilities. The bill also mandates operators to organize annual job fairs and workshops to help increase supplier diversity while setting long-term procurement goals that can help increase cultural, racial, and gender diversity in the near future.
The proposal also states that online casinos can have a diverse gambling library, which could cover live dealer games, slots, online poker, and table games. It goes further to allow gaming brands in Illinois to enter joint compact agreements with companies in states where iGaming is allowed, introducing an era of cross-jurisdictional online gaming.
Opposition and Concerns
Just like with any legislative bill, there are concerns about the feasibility of the move to legalize online casinos. The bill has been met with mixed reactions from stakeholders in the gaming industry, including casino operators and video gaming terminal (VGT) operators..
On one hand, many believe the bill will do a lot of good and have openly accepted it. However, companies like Penn Entertainment, which operates several casinos and VGTs in Illinois, have not received the idea warmly, stating that it would affect their $600 million investment in Illinois’ brick-and-mortar casinos.
Penn Entertainment also has support in voicing their opposition to the bill, as the Illinois Gaming Board (IGB) also noted that it currently lacks the resources to regulate the expansion of online casinos across the state properly. Other opponents of the bill, including labor unions, fear that it will affect many small businesses that rely on local foot traffic for gaming revenue.
In response to these concerns, lawmakers have put in place clauses to protect workers and small businesses from harm or job loss. They have also pointed to case studies in New Jersey to show that iGaming won’t affect the offline markets, as many brick-and-mortar casinos have seen an increase in the number of customers, which has led to significant economic implications in the state.
What Next For The Bill
This isn’t the first time a bill to legalize online gambling has been submitted in Illinois, but Rep. Edgar Gonzalez Jr and Senator Cristina Castro will be hoping it’s the last.
The bills, if signed into law, will see Illinois join states like Michigan and New Jersey in getting approval to fully operate its iGaming sector. The bills have led to a lot of conversations about iGaming in the state, but the ultimate decision lies in the hands of their respective legislative committees.
HB 3080 is currently under review by the House Committee, while SB 1963 has yet to be reviewed. As Illinois awaits the outcome of the legislative process, the iGaming industry is faced with two options: either accept the current state of things or embrace a change that will have a lasting effect on the industry as a whole.
