Are Online Casinos Coming To Illinois? State Rep. Rita Introduces Internet Gaming Act
State Rep. Bob Rita has introduced the Internet Gaming Act, which would bring online slot machines, table games and poker to the Land of Lincoln.
The bill would permit racetracks and casinos to apply for licenses for a fee of$ 500,000. Each entity would have a maximum of three coats.
Profits would be taxed at 12%, a similar number to the current sports wagering tax in Illinois.
Related to sports betting, there would be a six-month in-person enrollment period.
If it passes, online casinos have the potential to be a much bigger revenue driver for the state than sports betting. In Pennsylvania, for instance, online casino generated $28.6 million in December tax revenue. Of course, in Pennsylvania the tax rates are much higher. The state taxes slots at 54% and table games at 16%.
In contrast, sports betting brought within$ 12.3 million in tax revenue in December. Although Pennsylvania has a large tax rate on online casinos, the point is still valid.
But let’s get back to Illinois: what chance does the bill had of passing, even though it is a necessary first step?
As things stand, there are a lot of challenges. However, there is at least one cause for optimism.
The revenue money would be very helpful to Illinois.
In November, Illinois and the Fair Tax andrsquo did not pass.
In the months leading up to the November election, Illinoisans were inundated with advertisements about the & lsquo, Fair Tax, and other issues. Despite that, it didn’t go, which surprised me a little.
The Fair Tax would have increased taxes on the wealthiest 3% of residents in an effort to make up for budget shortfalls caused by COVID-19. Gov. JB Pritzker was a proponent.
In Pritzker’s recent budget address, he proposed$700 million in cuts to state agencies and $932 million in cuts to corporate and business tax loopholes.
Online casinos would undoubtedly benefit a state that is willing to produce dependable revenue streams, even though they only wouldn’t be able to solve the budget issue.
The challenges Illinois virtual games might encounter
Back in August, our Matt Kredellreported that there are plenty of opponents to online casinos in Illinois. Among them are:
- Association for Illinois Licensed Beer
- Operators of video gaming terminal ( VGT )
- proprietors of bars and restaurants
- Association of Illinois Municipal League
- Every group in the state without a casino has mayors and condition representatives.
- Senators who don’t like online gambling in general
- The state lottery and lottery retailers
VGTs have aided in the survival of numerous bars and restaurants throughout COVID-19. It’s possible that online gambling may suffer if they were to close.
Sen. Dave Syverson made the following statement:
The meager amount of video game they currently have going will help bars and restaurants that have just been devastated by the extremely onerous COVID rules from the state of Illinois stay in business. Many restaurants and bars would have to close if they lost VGT revenue to the internet, according to We & rsquo.
We & rsquo has also witnessed the potential challenges facing nearby Indiana online casinos.
Its casino bill never even escaped from the Senate. Additionally, the Hoosier State game economy scandal is still going on, which shouldn’t be a problem for Illinois because it harms the state’s economy.
Whatever the case, it demonstrates that the road ahead for virtual casino legislation is difficult.
In terms of timelines, Tom Swoik, a state-government lawyer, told Play Illinois in August that any regulations governing online casinos would probably take effect in the final week of May. & rdquo,
- In-Depth Coverage: See who’s for and against the online casino bill.
Why is there a requirement for in-person subscription?
The six-month in-person enrollment requirement is less than perfect, despite the fact that any online blackjack bill in Illinois is a major step.
Pritzker has suspended in-person sports betting registration for several months in a row, which has helped Illinois become the No. 4 sports betting market in the US.
Rush Street Interactive, which owns Rivers Casino, pushed for in-person registration in the sports betting bill. Rivers is located just outside of Chicago, and has a clear edge in an in-person registration world. It isn’t clear if any casino, Rivers or otherwise, is pushing this version of the bill, but the support for in-person registration does limit who might be behind the legislation.
But as this story develops, there will probably be a lot of turns and bends. We & rsquo will keep you informed of the most recent information.