Analysis: What Will The Illinois Gambling Industry Look Like In The Future?

The Illinois gaming expansion bill passed in 2019 has greatly shaken up the state’s traditional way of doing things. With a flourishing sports betting market and plans for more than 15 casinos to open in the near future, Illinois is on track to become a leading destination for gaming in the Midwest.

While the past two years have been exciting, we are just beginning the Illinois game. Our views on various issues will likely evolve over the next five, ten, and fifteen years.

Illinois claimed the top spot in the US sports betting market in June with a handle of $476.5 million, following a strong performance in May where it also ranked in the top two.

Although Illinois has allowed in-person sportsbook registration since April, residents are still prohibited from placing bets on Illinois college teams.

Despite the clear success of sports betting in Illinois, there are noticeable issues that require attention.

The Illinois Gaming Board (IGB) has not yet issued any of the six new casino licenses approved by the legislature in the past two years. Additionally, there is limited interest in the much-anticipated Chicago casino license.

Currently, we are making predictions about the potential future of the Illinois game industry in five years.

What is the average number of bets placed in sports betting? How many sportsbooks can be found? Is online casino gaming permitted? Can we expect any new games to be introduced?

Let’s begin with everything.

In five decades, sports gambling in Illinois

Illinois should offer online sports betting memberships.

It is anticipated that electronic registration for casinos will be available in 2022. Lawmakers did not intend for in-person membership to be a permanent requirement.

Illinois should consider allowing betting on in-state college teams in some capacity. A bill legalizing in-person betting on in-state college sports has already passed the House and is expected to be voted on by the Senate in either October or January.

Since the act was approved by a margin of 96 to 11 in the House, it is highly probable that it also passed the Senate.

Will we finally have the ability to electronically place bets on teams such as Illinois and Northwestern in five years? The uncertainty lies in whether or not this will be possible.

Rep. Michael Zalewski, a leading proponent of lifting the ban on in-state college betting, proposed to Play Illinois that the compromise of in-person betting could serve as a stepping stone towards eventually legalizing online gambling.

If all goes as planned for the in-person condition, it is highly likely that the ban will be completely lifted by 2026.

Sports gaming handle for upcoming casinos

At present, Illinois has just six online sportsbooks, but it is anticipated that this number will grow substantially to more than 10 within the next five years. In fact, it is not unreasonable to predict that there could be around 15 online sportsbooks operating in the state by then.

BetMGM, Unibet, Bally’s, theScore, and Golden Nugget have all shown interest. With the potential reintroduction of online registration in Illinois, more brands may also be drawn to the market.

Can we predict the average monthly handle for Fiscal Year 2021 based on Illinois’ recorded $5.1 billion handle and $380 million adjusted gross revenue?

During an interview with Play Illinois, Eric Noggle, a senior analyst at the Illinois Commission on Government Forecasting and Accountability, cited an Oxford Economics study indicating that the state’s annual gross revenue could greatly exceed its current levels.

Noggle penned in a message:

A study by Oxford Economics suggests that Illinois could potentially generate between $384 million and $680 million in adjusted net bet records each year before the state legalized sports betting. The figures from Illinois’ first year of legalization are already nearing the lower end of this range.

If Illinois consistently generates about $500 million in revenue every five years, this equates to an estimated annual revenue of $6.7 billion, compared to the $5.1 billion earned in the fiscal year 2021. March was the most lucrative month this year, with revenue reaching $633.6 million.

Put simply, Illinois could potentially hit $1 billion in revenue in the next five years. However, it’s hard to accurately predict consistent earnings due to the uncertain nature of the emerging US sports betting market.

By 2026, it is likely that multiple retail sportsbooks will be operating at Chicago stadiums. One such initiative is already in progress at Wrigley Field, and the city of Chicago is actively working to make stadium sportsbooks a reality.

Will there be an online game in Illinois in 5 years?

Well, that is the question worth a million dollars.

Industry sources are growing more doubtful about the passage of online casino legislation in Illinois in the near future. Nevertheless, there remains hope that it could be approved within the next five years.

In the beginning of 2021, bills were introduced in both the House and Senate to regulate online casinos, but neither gained enough support to move forward.

According to Tom Swoik, the executive director of the Illinois Casino Gaming Association:

Until a month ago, I was optimistic about our chances. It appears that the video game community is ready and strongly against it. While I’m not sure about the specifics, I think there could be opportunities for video game companies to participate in online betting in the future.

The Illinois VGT sector strongly opposes online casinos because of fears of market cannibalization. The main challenge is that many politicians back the VGT sector, as these machines are a vital source of income for bars and restaurants struggling during the COVID-19 pandemic.

VGTs contribute significantly to the state’s revenue, generating $64.8 million in taxes in July. The delay in the launch of newly approved casinos has led to a hesitation in promoting online casino gaming further.

Swoik declared:

“I think it may be achievable in the future, but at the moment, the demand for additional income is not as urgent as it was a year or two ago, due to the increased gambling revenue and government funding.”

With that said, there seems to be a political trend favoring online casinos in the future, as evidenced by the proposed legislation in 2021. The outcome of this issue will be heavily influenced by upcoming local elections, as the state legislature in 2026 is expected to differ from the current one.

How some games will there be in Illinois in five years?

There are 17 casinos with potential for success.

The company anticipates that at least five new gambling operations will be operational by 2026, despite the gradual approval process by the IGB for new venues. This includes the opening of two new establishments, FanDuel Sportsbook and Horse Racing, located at Hawthorne Race Course.

A casino based in Chicago may not be up and running by then, but additional information will be provided soon.

Due to the implementation of the game growth law, new casinos are permitted to operate in six designated regions within the state.

• Rockford
• County of Williamson
• Waukegan
• Danville
• neighbourhoods in the southern
• Chicago

The IGB has determined that both Rockford and Williamson County are “preliminarily suitable” for a license, making them the top choices for opening first.

The slow process is frustrating bidders for the other licenses, but as one source pointed out, “five years from now is a significant amount of time.”

Regarding the Chicago game

Chicago has set the year 2025 as the target for opening its “mega-casino,” but it is evident that the project has faced numerous setbacks and deviations from the original plan.

The city has extended the deadline for the “Request for Proposal” from August to October 2021 due to a lack of interest from operators. Potential bidders have cited high tax rates as a factor deterring their participation in the process.

Swoik thinks that users would be interested if the current tax rates were lower.

I predict that there will be a renewed effort to alter Chicago’s tax structure in the upcoming session.

The program has been scheduled for January.

There is a possibility of further delays in the process, raising uncertainty about the five-year timeline. Rush Street Gaming, the owner of Rivers Casino, is currently the only company expressing interest in the Chicago casino license.

There are still many unresolved questions surrounding these issues, including who, where, what, how, and when (and sometimes why). However, one thing is definite – Illinois will have numerous gambling options in five years, along with a wealth of gaming news to keep track of until then.