Are Online Casinos Coming To Illinois? State Rep. Rita Introduces Internet Gaming Act

State Representative Bob Rita has introduced the Internet Gaming Act, which suggests bringing online slot machines, poker, and table games to Illinois.

The new legislation would permit racetracks and casinos to apply for licenses, with each license costing $500,000. Each entity would be eligible for up to three licenses.

The profit tax rate would be set at 12%, similar to the current tax rate on sports betting in Illinois.

For sports betting, a six-month in-person registration period would be necessary.

If approved, online casinos have the potential to generate significantly more revenue for the state than sports betting. For instance, in Pennsylvania, online casinos brought in $28.6 million in tax revenue in just one month. It is important to mention that Pennsylvania has higher tax rates for casinos, with slots taxed at 54% and table games at 16%.

On the other hand, sports betting brought in $12.3 million in tax revenue in December. Even though Pennsylvania has a high tax rate on online casinos, the argument still holds true.

However, let’s circle back to the discussion about Illinois. While it is an important first step, what are the chances of the bill being approved?

Despite the many challenges we are currently facing, there is still a reason to stay optimistic.

Illinois would greatly benefit from the revenue.

In November, Illinois and the Fair Tax andrsquo did not pass.

Leading up to the November election, Illinois residents were bombarded with advertisements about the ‘Fair Tax’ and other topics. I found it somewhat unexpected that the ‘Fair Tax’ ultimately did not pass.

Governor JB Pritzker supported the proposal for the Fair Tax, which aimed to raise taxes on the top 3% of residents to address budget deficits caused by COVID-19.

During his latest budget speech, Pritzker suggested reducing funding for state agencies by $700 million and closing corporate and business tax loopholes to the tune of $932 million.

While online casinos may not completely solve budget issues, they can still provide states with a dependable source of revenue.

The challenges Illinois virtual games might encounter

In August, our reporter Matt Kredell highlighted the large amount of resistance to online casinos in Illinois. Those who are against the idea include:

• Illinois Licensed Beer Association
• Operators of video gaming terminals (VGTs)
• Bar and restaurant owners
• Illinois Municipal League Association
• Every municipality in the state without a casino has mayors and state representatives.
• Senators typically have reservations about online gambling.
• Vendors selling lottery tickets and the state lottery organization

Many bars and restaurants have been able to stay afloat during the COVID-19 pandemic with the help of VGTs. If these businesses were to shut down, online gambling may encounter challenges.

Sen. Dave Syverson made the following statement:

The limited amount of video game activity currently running could help struggling bars and restaurants in Illinois stay open amidst strict COVID regulations. We & rsquo reports that many of these establishments may have to close if they lose their VGT revenue to online competition.

We have also noted the possible obstacles that online casinos in neighboring Indiana could encounter.

The Senate failed to pass the casino bill, and the scandal surrounding the game economy in the Hoosier State continues. This shouldn’t affect Illinois, as it could harm the state’s economy.

No matter the circumstances, it is evident that the road ahead for virtual casino legislation is difficult.

According to state-government lawyer Tom Swoik, regulations for online casinos are expected to be put into effect in late May, based on current timelines, as he informed Play Illinois in August.

• Comprehensive Analysis: Explore the backers and detractors of the proposed online casino regulations.

Why is there a requirement for in-person subscription?

While the introduction of any online blackjack bill in Illinois is a notable step, the mandatory six-month in-person enrollment requirement is not ideal.

Pritzker’s decision to suspend in-person sports betting registration for several months in a row has helped Illinois become the fourth largest sports betting market in the United States.

Rush Street Interactive, the parent company of Rivers Casino, pushed for the inclusion of in-person registration in the sports betting legislation. Located near Chicago, Rivers Casino would have a strong competitive edge if in-person registration is mandated. While it is unclear if any specific casino, such as Rivers, is supporting this particular provision of the bill, the backing of in-person registration helps identify potential supporters of the legislation.

As this story progresses, expect many unexpected developments. Rest assured, we will provide you with the most up-to-date information.