Past And Present: Illinois Gambling Expansion

Past And Present: Illinois Gambling Expansion

What you need to know about sports betting, casino, VGTs and OTBs in Illinois

The gambling expansion bill in Illinois, signed by Gov. JB Pritzker in June 2019, continues to yield benefits. The bill paves the way for legal sports betting in Illinois and the establishment of six new retail casinos, including one in Chicago.

At present, Illinois is home to 10 retail casinos and thousands of video gaming terminals (VGTs) located at truck stops, bars, and so on.

This is the information you require to legally gamble in Illinois.

Is gambling legal in Illinois?

Indeed, Illinois legislation permits both retail and online sports betting, retail casino and poker games, racetrack and OTB betting, lottery, and charitable gambling. In June 2019, the gambling expansion bill was signed into law by Pritzker. This bill comprised the Sports Wagering Act. The bill incorporated:

  • Sports betting legalization in Illinois.
  • Approval for six new casino licenses.
  • Adding Chicago to the list of casino locations.
  • Expansion of VGTs.

The Sports Wagering Act did not legalize online casino games or online poker. However, the possibility of online casino gaming might come to the state if the Internet Gaming Act, introduced on Feb. 19, 2021, is passed.

Where can I bet on sports in Illinois?

You can finalize your new sports betting account by visiting the retail locations of online sportsbooks such as BetMGM, DraftKings, FanDuel, PointsBet, BetRivers, Barstool or Caesars, where you can also place sports bets online.

Online Sportsbook Casino/OTB
PointsBet Hawthorne Race Course
BetRivers Rivers Casino
PointsBet Club Hawthorne Crestwood
PointsBet Player’s Pub & Grill
Caesars Grand Victoria Casino
Barstool Hollywood Aurora
FanDuel FanDuel Sportsbook & Horse Racing
DraftKings DraftKings at Casino Queen
BetMGM Par-A-Dice Casino

   

How much revenue does sports betting bring to Illinois?

As of October 2021, Illinois is approaching a lifetime revenue of $560 billion. The state maintains its position as the third highest in the US in terms of total monthly wagered dollar amounts. According to the Illinois Gaming Board, the total wagers posted by Illinois in October 2021 amounted to $840.4 million.

Where can I play casino games in Illinois?

    Casinos in various locations: Argosy Casino in Alton, Casino Queen in East St. Louis, DraftKings at Elgin’s Grand Victoria Casino, Harrah’s Casino in Joliet and Metropolis, Hollywood Casino in Aurora and Joliet, Quad Cities Bally’s Casino & Hotel, Par-A-Dice Casino in East Peoria, and Rivers Casino in Des Plaines.

Where can I bet on horses in Illinois?

  1. Collinsville FanDuel Sportsbook & Horse Racing
  2. Hawthorne Race Course, Stickney

Which Illinois regions will get a new casino?

The Sports Wagering Act permits the construction of six new casinos in specified areas. These include:

  • Chicago
  • Danville
  • Rockford
  • South Suburbs
  • Waukegan
  • Williamson County

Who are the winners of the Illinois casino licenses so far?

The Illinois Gaming Board (IGB) selected the successful applicants for two additional casino licenses in December 2021 – American Place Casino in Waukegan and Wind Creek Casino Homewood/East Hazel Crest in the south suburbs. The board also preliminarily deemed both groups suitable for a license.

Here are the applicants:

  • Rockford applicant, 815 Entertainment LLC (Hard Rock Casino Rockford):
  • Applicant from Waukegan: CDI-RSG Waukegan LLC (Rivers Waukegan Casino)
  • Waukegan Applicant: Full House Resorts Inc.
  • The applicant from Waukegan for Lakeside Casino LLC (North Point Casino)
  • Applicant from Matteson for South Suburban Development LLC
  • Lynwood Applicant: Southland Ho-Chunk Entertainment LLC
  • Applicant from Calumet City for Southland Live LLC (Southland Live Casino)
  • Williamson County applicant: Walker’s Bluff Casino Resort LLC
  • Danville Applicant: Wilmorite Management Group
  • Applicant from Homewood/East Hazel Crest: Wind Creek IL LLC

Where will the Chicago casino be located?

We are yet to receive the exact answer, but we are aware of the areas being considered by city and gaming officials. In January 2020, five casino locations were recommended by Mayor Lori Lightfoot. These locations include:

  • Harborside
  • Michael Reese
  • Pershing and State
  • Roosevelt and Kostner
  • US Steel

Lightfoot insists that the designated locations, all of which are either on the south or west sides of the city, do not comprise an exhaustive list. Industry professionals surmise that these areas might be among the least profitable. They are advocating for a location nearer to or directly in the city’s downtown core.

The city of Chicago, on August 27, initiated a request for information (RFI) inviting innovative suggestions for its downtown casino project. Experts say the venue’s location will significantly influence its revenue, an important aspect given the potential high-profit margins a Chicago casino could bring. In the summer of 2019, a consultant mandated by the state predicted that a casino in a central location could generate annual revenue of $1.2 billion, nearly three times more than Rivers, which currently stands as Illinois’ most profitable casino.

The size of a potential Chicago casino is still unknown, as it largely depends on its location. However, this project would generate thousands of jobs, attract tourists and locals for entertainment, and contribute tax revenue to both the state and Cook County.

How much Illinois tax revenue will new casinos create?

When fully implemented, lawmakers estimate that Illinois could earn between $1.2 billion and $1.8 billion in one-time costs from bids on new casinos. This equates to $200 million to $300 million for each available license. Following this, they forecast that annual revenues from slot machines and table games could amount to nearly $190 million. This projection, however, does not include potential earnings from retail sports betting, which could further increase the total revenue.

What about VGTs in Illinois?

In addition to thousands of video gaming terminals (VGTs) spread throughout the state, Illinois has seen a boost in video gaming thanks to bill SB 690. Now, licensed locations can house six VGTs as opposed to the previous limit of five. The maximum wager per machine has doubled from $2 to $4. Taxes on video gaming have also risen from 30% to 33% due to the bill. As reported by Capitol Fax, this could contribute around $40 million to the state’s annual tax revenue.

History of Illinois gaming

Before the first sports bet was placed in Illinois, there was a lot of debate and legal disputes. Even after it happened, discussions kept going as stakeholders deliberated on the best way to introduce sports gambling in the state. Here’s a chronological account starting from the current day:

2021

September

Churchill Downs chose the Chicago Bears as the purchaser for Arlington International Racecourse. This decision could have significant future consequences, given that the Bears are on the verge of leaving Soldier Field.

The Bears, whom we were discussing, started their season with a defeat to the Los Angeles Rams in a September primetime game.

As of September, Jumer’s Casino & Hotel is no more. It is now ‘Bally’s Quad Cities Casino & Hotel,’ with plans to introduce retail sports betting.

August

In August, Illinois recorded a sports betting handle of $400.4 million, maintaining its third position behind New Jersey and Nevada in the US.

Meanwhile, to stay competitive with FanDuel in terms of revenue, DraftKings Sportsbook introduced a Same Game Parlay feature.

The Field of Dreams Game saw a match between the White Sox and Yankees, concurrently, the Bulls were making waves in the free agency by acquiring Lonzo Ball and DeMar DeRozan.

July

As per the usual trend in the sports betting industry, July was a comparatively slow month in Illinois.

DraftKings transitioned to SB Tech within the state. This provided another option for lines to sports bettors in Illinois, as DraftKings previously utilized Kambi, alongside BetRivers and Barstool.

We also obtained the revenue figures for sports betting in May. Illinois surpassed the $500 million mark once more, maintaining its position as the second highest sports betting state in the nation.

June

In June, Illinois completely reopened, allowing casinos and sports stadiums to operate at full capacity. This policy affected all 10 state casinos, retail sportsbooks, and both Wrigley Field and Guaranteed Rate Field.

The Illinois House of Representatives also approved a bill to legalize collegiate betting within the state. However, this would only apply to in-person betting. The bill still requires a vote from the Senate before the governor can enact it into law.

In conclusion, the Chicago Bears have placed a bid to purchase Arlington International Racecourse, and have also named BetRivers as their official sports betting partner.

May

In May, we discovered that Illinois had broken its own record for the highest ever sports betting handle. This occurred in March, with Illinois residents betting a substantial $633.6 million throughout the month.

We also discovered that William Hill would ultimately transform into Caesars Sportsbook by William Hill in Illinois. Caesars expressed its intention to rebrand all of its US properties in line with the football season.

April

Illinois Gov. JB Pritzker unexpectedly terminated remote registration in the state, a decision that had far-reaching implications for the industry.

We also discovered that over $200 million was bet by Illinoisans on March Madness alone.

At last, the local Bears made a significant move by trading up for rookie QB Justin Fields. This could potentially make the Bears a favorable bet for 2021 and the years to follow.

March

The Land of Lincoln, Illinois, welcomed Barstool Sportsbook as its sixth online offering.

We also got information about January’s revenue figures, with Illinois generating a record-breaking $581.6 million in handle.

Finally, Illinois celebrated its first anniversary of sports betting, and in March, it reached $2 billion in all-time handle.

February

The Illinois Gaming Board (IGB) announced in February that the Prairie State set a new record for sports betting in December, according to the latest figures released for Illinois.

It reported $491.7 million in handle, nearly reaching the $500 million mark.

We also discovered that Churchill Downs intends to sell Arlington International Racecourse, indicating that racing in Arlington Heights may soon be a thing of the past.

January

In January, we discovered that Illinois had set another record total for sports betting in November.

The Land of Lincoln maintained its position as the US’s No. 4 sports betting state, recording $449.2 million in bets in November.

As COVID-19 numbers continued to decrease, Governor Pritzker also reopened all 10 casinos in Illinois towards the end of the month.

Despite the absence of new sportsbook launches, it was revealed that Barstool intends to launch in time for March Madness.

2020

December

The 10 casinos in Illinois stayed closed for the entire month, so the registration for mobile sports betting also continued to be in effect.

The continued rise in sports betting handle remained the dominant narrative in the industry. In December, sports betting statistics for October were released, revealing that the Land of Lincoln recorded a handle of $434.6 million.

Illinois is rapidly approaching Pennsylvania to become the third largest sports betting market in the US.

The Ameristar Casino East Chicago, despite being located in Indiana, opened a new Barstool retail sportsbook. Its close proximity of just half an hour from downtown Chicago makes it a potential key retail choice for Chicagoans.

November

As the weather got colder and Illinois experienced a spike in COVID-19 cases, Gov. Pritzker made the decision to close all 10 state casinos in mid-November.

The video gaming terminals were shut down in November due to extremely high numbers and remained closed for the entire month and even longer.

On a brighter note, the IGB recently disclosed the sports betting revenue figures for September. Illinois set a new record with a handle of $305.2 million, marking its highest ever.

IL has risen to the No. 4 spot in the US and has become the country’s fastest-growing market.

October

By Illinois standards, October was a relatively peaceful month, yet we gained substantial knowledge about the rapidly growing gaming industry in the state.

The Illinois Gaming Board (IGB) announced the revenue figures for August, which were as remarkable as anticipated. The state recorded a $140 million handle for the month, and BetRivers dominated the market by securing a whopping 84% share.

The mobile registration deadline has been extended again by Pritzker until at least Nov. 14, and it seems this will be the ongoing policy in the near to mid future due to the surge in COVID-19 cases.

In conclusion, Fairmount Park was granted a master sports wagering license by the IGB in collaboration with FanDuel. Additionally, Fairmount Park was deemed ‘preliminarily suitable’ by the board to go ahead with its racino plans.

September

Illinois sports betting had an eventful September.

Due to the pandemic, mobile registration was open for an entire month. The IGB reported in mid-September that 230,000 online sportsbook accounts were established in the state.

Mobile registration has been extended until at least Oct. 17 by Gov. JB Pritzker.

In addition to PointsBet and William Hill, two online sportsbooks were launched, making a total of five. PointsBet also inked a deal with the Chicago Bears, becoming their first official sports betting partner. Plans to manage three off-track betting facilities in the Chicago area were also announced by the operator.

DraftKings and the Cubs have partnered up on the north side of Chicago, with plans for DraftKings to run a retail sportsbook at Wrigley Field in the future.

August

DraftKings launched its retail sportsbook in Illinois in August, coinciding with Casino Queen’s rebranding to DraftKings at Casino Queen.

DraftKings was initially only retail-based. However, on August 21, Governor Pritzker temporarily suspended the need for in-person registration, enabling DraftKings to introduce its online sportsbook in Illinois. This was the second mobile product to be released in the market.

Shortly after partnering with Par-A-Dice Casino, FanDuel launched its online sportsbook on August 28. The executive order is set to expire on September 19, and the potential industry implications could be significant depending on Governor Pritzker’s decision to extend it or not.

Thankfully, just in time for the BMW Championship at Olympia Fields, Illinois sportsbooks resumed offering golf events. At this event, Jon Rahm triumphed over Dustin Johnson in one of the most exciting PGA Tour events of the year.

July

The reopening of casinos marked the beginning of July, following their closure due to the pandemic.

The following day, FanDuel, mirroring DraftKings, declared a partnership with a land-based operator in Illinois, Par-A-Dice Casino. FanDuel also obtained a temporary operating permit as a service provider.

However, Gov. Pritzker unexpectedly withdrew his executive order on July 27, which had lifted the restriction on in-person registration for online sportsbook accounts.

A lot transpired since the initial statement of the order, with Pritzker rescinding it without any prior warning. This sudden development took operators by surprise. Meanwhile, the MLB began its shortened season and both the NBA and NHL restarted their seasons. This allowed the two active retail sportsbooks in the state to offer games for betting.

Another bit of controversy marked the end of July.

Due to a misunderstanding with the IGB, BetRivers had to temporarily halt bets on golf, tennis, motorsports, Korean baseball, and certain soccer leagues. The issue was eventually sorted out, highlighting the ongoing uncertainty of Illinois’ fledgling sports betting scene.

June

The Illinois sports betting saga took another unexpected turn at the start of June.

On June 8, Gov. Pritzker signed an executive order suspending the need for in-person registration for an online sportsbook, due to the continued closure of casinos across the state. The Illinois Gaming Board confirmed that this order will be applicable until they issue a master sports wagering license.

On June 11, the IGB issued four-year sports betting licenses to all seven casinos with temporary operating permits. This action also initiated a 630-day period during which regulators can start considering competitive bids for online-only licenses.

A week later, on June 18, BetRivers became the first online sportsbook to launch in Illinois. The site’s initial users were able to register for accounts online, thanks to an executive order from Gov. Pritzker.

DraftKings concluded June by partnering with Casino Queen, potentially paving the way for an earlier than expected entry of DraftKings’ online sportsbook into Illinois.

May

In May, a seventh casino was granted its temporary operating permit.

  • DraftKings at Casino Queen

Although seven casinos possessed permits, only the Rivers Casino and the Argosy Casino Alton were provisionally allowed to accept sports bets.

April

A temporary operating permit was received by a sixth Illinois casino in April.

  • Par-A-Dice Casino

Additionally, a highly awaited judicial decision was made in April by the Illinois Supreme Court. They ruled on the legal status of daily fantasy sports.

In 2015, Attorney General Lisa Madigan declared that Daily Fantasy Sports (DFS) was illegal, a viewpoint that significantly influenced sports betting legislation, labeling DraftKings and FanDuel as “bad actors.” Despite this opinion, these DFS sites continued to cater to players in Illinois. Consequently, the “penalty box” was imposed, requiring both sites to wait for 18 months before they could apply for licenses to launch their individual online sportsbooks in the state.

Nonetheless, the Illinois Supreme Court’s decision dismissed Madigan’s viewpoint. The verdict deemed that DFS games possessed a sufficiently significant skill component to prevent breaching state law regulating games of chance.

March

From late 2019 onward, the state had targeted March Madness as the launch date for sports betting.

Two more casinos were granted temporary operating permits by early March.

  • Hollywood Casino Aurora
  • Hollywood Casino Joliet

The state’s racetracks also applied for licenses by the end of March, but none had been approved yet.

Rivers Casino, having been granted provisional status to accept sports bets, became the first to do so on the morning of March 9 at its BetRivers Sportsbook. Three days following this, Argosy Casino Alton also opened its sportsbook.

Unfortunately, that was also the week when the sports world underwent an unforeseen and dramatic change for both sportsbooks.

The NBA announced a suspension of its season due to the coronavirus on the night of Wednesday, March 11. The following day, Thursday, March 12, the NHL also postponed its season, MLB called off spring training, and the NCAA cancelled all remaining winter and spring championships, including March Madness. By the end of that weekend, nearly every major sport across the globe had ceased operations.

Although sports betting was legal in Illinois, there were no sports available to bet on.

February

Three casinos took the lead in applying for sports betting licenses at the end of January:

  • Argosy Casino Alton
  • Grand Victoria Casino Elgin
  • Rivers Casino

Each received temporary operating permits from the IGB in early February.

Every one of the 10 casinos had initially expressed interest in acquiring sports betting licenses. Yet, when it was time to apply, a few seemed less keen. The continuation of their objections to the in-person registration mandate for those wanting to set up an online sportsbook account was a contributing factor to their diminished enthusiasm.

PointsBet demonstrated its intention to run an online sportsbook in Illinois by partnering with Hawthorne Race Course near Chicago.

January

In the latter part of January 2020, the second phase of emergency rules was given the green light by the IGB. The updated regulations incorporated a set of criteria intended to assist in determining if imposing fees on operators to access official league data for in-play betting was “commercially reasonable”.

They also provided clarity on some other specifics about the kinds of sports events that license holders could take bets on. Stadiums and arenas seeking licenses needed to get permission from the teams playing in their venues. Additionally, bets placed in Cook County would be subject to an extra 2% county tax.

2019

July-December

Next, the Illinois Gaming Board had to establish rules for executing the Sports Wagering Act. Their displeasure with the legislation led the IGB to incorporate a 30-day public commentary phase in their process, which ended in late September.

Indiana and Iowa, both neighboring states, legalized sports betting prior to Illinois in May. They managed to establish regulations and initiate sportsbooks before the commencement of the 2019 NFL season. Nonetheless, Illinois was not ready to join the sports betting scene for some time.

In November, the IGB announced that sports betting licenses applications would become available the next month, following the implementation of the first phase of its Emergency Sports Wagering Rules.

Regulators declared on Dec. 19 that the first phase of the application process had started, with a second phase concerning operational guidelines set to arrive early in 2020.

End of May-June (passage into law)

The casinos reacted with pleasure, whereas DraftKings and FanDuel were not entirely satisfied. Chicago Mayor Lori Lightfoot was against sports betting at stadiums near the new Chicago casino included in the gaming package.

The bill was opposed by the Illinois Gaming Board, Boyd Gaming, and Penn National Gaming. However, as sports betting had been incorporated into a larger capital bill that was likely to be approved, the legislation was in a fairly secure position.

The capital bill was eventually approved by the House with a vote of 82-27. Two days afterwards, the Senate also passed it with a vote of 46-10.

On June 28, 2019, Gov. Pritzker signed the bill into law, thereby legalizing sports betting in Illinois.

End of May-June (Inclusion within capital improvements plan)

Just days before the deadline, the passage of the bill remained uncertain as multiple caucuses and other entities continued to express their opinions. Additionally, Sen. Rita chaired more subcommittee hearings.

Rep. Zalewski stepped down following revelations of his role as a lawyer for various gambling companies, which could potentially create a conflict of interest.

The sports betting legislation, which is part of the broader gaming package, was eventually incorporated into Governor Pritzker’s $41 billion capital improvements plan. A deal with DraftKings and FanDuel allowed them to participate in sports betting from the outset, but initially limited their operations to partnerships with existing casinos.

Three online-only licenses, each with a price tag of $20 million, would become available after an 18-month period. This year-and-a-half delay, during which online-only operators had to wait, was referred to as the “penalty box” in relation to DraftKings and FanDuel.

Casinos had the opportunity to acquire sports betting licenses for a four-year period at a cost of $10 million. After the initial four years, the license could be renewed annually for $1 million. The tax rate on the revenue was set at 15%. The agreement included a clause requiring sportsbooks to use official league data for live betting, though there were no associated integrity fees.

Additionally, it’s worth mentioning that individuals wishing to use online sportsbooks would be required to sign up for their accounts in person at the associated casino, for at least the first year and a half. After this period, the three online-only sportsbooks would be permitted to commence operations. This stipulation has been deemed problematic by many supporters of online sports gambling, as the in-person registration requirement would inevitably restrict the potential earnings of online sportsbooks.

January-early May

In 2019, lawmakers started introducing legislation again to legalize sports betting, backed by the support of Gov. Pritzker.

Rep. Mike Zalewski introduced a preliminary bill, also known as the Sports Wagering Act, which underwent multiple hearings. The bill was also revised numerous times with several amendments before it was finally merged with other legal measures. In the end, it was incorporated into a more extensive casino expansion bill, with Rep. Bob Rita and Sen. Terry Link serving as the primary sponsors.

The proposed law would permit the 10 existing casinos in the state, three racetracks, sports venues with a capacity of 17,000 or more, and lottery vendors to run both online and physical sportsbooks. Additionally, the bill would approve the establishment of new casinos within the state, featuring one in downtown Chicago.

As the end-of-May legislative session deadline drew near, it paved the way for a dramatic conclusion.

The casinos in the state were displeased with the merging of the sports betting and the broader expansion bill.

Rep. Zalewski introduced legislation requiring DFS sites, which previously operated in Illinois, to have a hiatus once the new law was enacted. This sparked a controversy over daily fantasy sports. Lobbyists for DraftKings and FanDuel, who were displeased by this, made their objections known. Ultimately, representatives from both companies ended up testifying at an Illinois hearing to argue their case.

2018

In 2018, Illinois lawmakers started considering sports betting.

In January, the first of five sports betting bills was proposed by Rep. Lou Lang, titled the Legalization and Regulation of Sports Betting Act. By March, the remaining four bills had emerged, with one of them being the Sports Wagering Act, proposed by Sen. Napoleon Harris.

Harris’s proposed legislation would allow both retail and online sports betting, with 12.5% of the generated revenue going to the state. As a former NFL linebacker, Harris also stipulated that sportsbooks would need to pay a so-called “integrity fee” to any professional sports leagues that request it.

Although none of these bills reached a voting stage, the decision by the US Supreme Court in May 2018 to lift the federal ban on sports betting in states stimulated interest in Illinois. Consequently, the Prairie State began a serious consideration of sports betting in the subsequent year.