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

State Representative Bob Rita has put forward the Internet Gaming Act, proposing the introduction of online slot machines, poker and table games to the Land of Lincoln.

The proposed legislation would allow racetracks and casinos to request licenses at a cost of $500,000 each. Every entity could have up to three licenses.

The tax on profits would be 12%, a figure comparable to the existing tax on sports betting in Illinois.

In relation to sports betting, an enrollment period of six months in-person would be required.

Should it be approved, online casinos could potentially generate much larger revenue for the state compared to sports betting. For example, in Pennsylvania, online casinos produced $28.6 million in tax revenue in December alone. It should be noted that Pennsylvania imposes significantly higher tax rates, with slots taxed at 54% and table games at 16%.

Conversely, sports betting generated $12.3 million in tax revenue in December. Despite Pennsylvania’s high tax rate on online casinos, the argument remains valid.

But let’s return to the topic of Illinois: even though it’s a crucial initial step, what is the likelihood of the bill passing?

Currently, we are facing numerous challenges, but there is at least one reason to remain optimistic.

The revenue would be extremely beneficial to Illinois.

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

In the months preceding the November election, people in Illinois were overwhelmed with advertisements concerning the ‘Fair Tax’ and other issues. Despite this, the ‘Fair Tax’ didn’t pass, which was a bit surprising to me.

In an attempt to compensate for budget deficits due to COVID-19, the Fair Tax was proposed to raise taxes on the wealthiest 3% of residents. This was supported by Gov. JB Pritzker.

In his recent budget address, Pritzker proposed cuts of $700 million to state agencies and $932 million to corporate and business tax loopholes.

Although online casinos alone wouldn’t be able to resolve the budget issue, a state would undoubtedly benefit from them as they are capable of generating reliable revenue streams.

The challenges Illinois virtual games might encounter

In August, our reporter Matt Kredell noted that in Illinois, there is a significant number of opposition to online casinos. Those opposed include:

• Illinois Licensed Beer Association
• Video gaming terminal (VGT) operators
• Owners of bars and restaurants
• Illinois Municipal League Association
• Every group in the state that doesn’t have a casino has mayors and condition representatives.
• Senators generally opposed to online gambling
• Lottery retailers and the state lottery

Numerous bars and restaurants have managed to survive throughout COVID-19, thanks to VGTs. However, if these establishments were to close, online gambling could potentially face difficulties.

The following statement was made by Sen. Dave Syverson:

The modest volume of video game activity currently in operation could assist bars and restaurants that have been severely impacted by the particularly burdensome COVID regulations from the state of Illinois to remain open. According to We & rsquo, many such establishments would be forced to shut down if they lost their VGT income to the internet.

We have also observed the potential challenges that online casinos in nearby Indiana may face.

The casino bill never managed to pass through the Senate. Furthermore, the ongoing scandal surrounding the game economy in the Hoosier State persists, which shouldn’t pose an issue for Illinois since it negatively impacts the state’s economy.

Regardless of the situation, it shows that the path forward for virtual casino legislation is challenging.

Tom Swoik, a state-government lawyer, informed Play Illinois in August that any rules regulating online casinos would likely be implemented in the last week of May, when looking at timelines.

• Detailed Report: Discover the supporters and opponents of the online casino legislation.

Why is there a requirement for in-person subscription?

Despite the fact that any online blackjack bill in Illinois is a significant move, the six-month in-person enrollment requirement is not perfect.

Pritzker’s suspension of in-person sports betting registration for numerous consecutive months has assisted Illinois in becoming the fourth largest sports betting market in the US.

Rush Street Interactive, the owner of Rivers Casino, advocated for the inclusion of in-person registration in the sports betting legislation. Rivers Casino, situated just outside Chicago, would have a significant advantage in a scenario where in-person registration is required. While it’s uncertain whether any casino, including Rivers, is promoting this version of the bill, the endorsement of in-person registration narrows down potential backers of the legislation.

As this narrative unfolds, it is likely to take numerous twists and turns. We’ll make sure to keep you updated with the latest information.