Who’s For, Who’s Against The Most Significant Illinois Gaming Proposals

Written By Joe Boozell on April 30, 2021
for against illinois gaming proposals

The Executive Committee of the Illinois House met on April 28 to discuss gaming proposals.

The agenda for the gaming conference covered important topics such as online casino regulations, sign-ups for in-person sports betting, and wagering on state college teams, among other key issues.

As is often the case, these topics have their supporters and detractors. Some politicians are known to champion or oppose certain initiatives, while entire industries may either support or oppose certain procedures.

Shall we proceed, then?

Website blackjack regulations

Currently, the House is reviewing HB 3142, a bill regarding online casinos.

Illinois is considering legalizing virtual games like online casinos, table games, and blackjack. Six states already have some form of legal online gaming.

The House bill mandates a six-month requirement for in-person registration, sets a tax rate of 12%, and imposes a limit of 36 coats.

Who & rsquo,s for an Illinois online casino

Rep. Robert Rita, head of the committee

At the reading, Robert Rita co-sponsored HB 3142 but failed to offer substantial details on online gambling.

 

 

Jonathan Carroll, a representative

Jonathan Carroll, although not actively involved in this board, is a co-sponsor of the Internet Gaming Act.

 

 

Daniel Didech, Rep.

Daniel Didech was the head of the board for online casinos.

He supported the idea of a regulated market, stating that the illegal online casino industry presents a risky status quo.

These illegal websites prioritize profit over the well-being of individuals struggling with gambling addiction, exploiting problem gamblers. Additionally, they damage the Illinois economy by avoiding taxes and job creation.

Several witnesses also emphasized the potential economic benefits of online casino games in Illinois.

According to John Pappas, the founder and CEO of Corridor Consulting, factoring in licensing fees, the online casino sector in Illinois has the potential to generate $1 billion in tax revenue over the next five years.

Who & rsquo, skeptic / against playing at an online casino

Multiple witnesses claimed that online gaming would not have a negative impact on physical casinos in Illinois. This perspective is supported by the fact that all casinos in the state are in favor of online gaming.

Tim Butler, a representative

Nevertheless, Tim Butler countered his opponents by mentioning the potential impact on the video gaming terminal (VGT) industry, asserting that it would suffer the most from the rise of online casinos.

Butler labeled them as “mom-and-pop businesses” and while he did not explicitly oppose the bill, he did raise some concerns.

Finally, a number of witnesses provided testimony against online casino gambling and in favor of VGTs.

The VGT industry and legislators concerned about potential cannibalization appear to be the primary opponents of online casinos.

betting on intrastate colleges

The discussion at the hearing commenced with the issue of betting on in-state college sports.

At present, Illinois residents can legally wager on teams from local schools like Illinois, Northwestern, Loyola-Chicago, and others.

This year, Rep. Michael Zalewski introduced a bill to repeal the ban, which was a topic of discussion on the panel.

Who & rsquo, in favor of lifting the ban on college betting in Illinois

Michael Zalewski, Rep.

Michael Zalewski, who also gave a speech at the event, co-sponsored the act.

He claimed that the ban weakens our market and makes us less competitive than we have the potential to be.

Zalewski pointed out that it is easy for an Illinois resident to travel to Indiana or Iowa and bet on an Illinois team.

Pappas reported that the rule resulted in a 15% decrease in the state’s market.

Jonathan Carroll, a representative

Carroll appears to have offered assistance during the hearing and is also a co-sponsor of Zalewski’s bill.

Later, Josh Whitman, chairman of Illinois Athletics, talked about how the reform could increase the pressure on athletes. Carroll questioned Whitman’s assertion that a school could decrease an athlete’s scholarship for poor athletic performance.

Who & rsquo opposes / skeptics a repeal

Director of athletics for Illinois Josh Whitman

During the hearing, Whitman represented all 13 Division I athletic directors from Illinois.

Whitman argued that while it is technically feasible to cross the border to Iowa or Illinois to bet on house activities, it is more difficult in practice than it may seem.

He was primarily worried about how in-state school sports betting would affect the mental well-being of student athletes.

In this testimony, a portion is included

My colleagues and I are deeply concerned about the increasing trend of individuals becoming overly reliant on their phones, using social media to form their self-image and making comments about people they have never met. This behavior is especially prevalent in contemporary college sports. We are strongly opposed to the idea of allowing individuals in our state to place bets on our student athletes, as this can lead to harmful, intimidating, and abusive interactions with them.

Tim Butler, Rep.

Butler did not openly oppose a repeal, leading to his categorization as ‘skeptical’.

While he acknowledged Whitman’s point about the difficulty of crossing state lines to place sports bets, he contended that Zalewski’s proposed solution is not as simple as it seems.

In-person register for sports gambling

Illinois Governor JB Pritzker chose not to prolong his executive order allowing for mobile sports betting registration in early April. As a result, individuals looking to place bets in Illinois must now physically visit a casino to register for an online sports betting account.

In-person registration will continue until 2022 unless there is a change in legislation. Mobile registration will not be possible until the Illinois Gaming Board grants a license for mobile use, which is not expected to happen before 2022.

Nevertheless, there is no guarantee that the license will attract any bidders, considering its hefty price tag of $20 million and the established presence of DraftKings and FanDuel in the Illinois market.

Who & rsquo,s for registering for online sports betting

Online sportsbooks in Illinois

Many people supported the idea of signing up with an online casino.

More precisely, Trevor Hayes representing William Hill (on the right) and Jeff Kaplan from Penn National Gaming (on the left).

In Illinois, the Barstool Sportsbook operates under the umbrella of Penn National Gaming.

Who & rsquo, s on the fence / against registration online

Representative Robert Rita

Legislators notably did not endorse enrollment via the website.

A number of individuals debated the challenges of getting the 2019 gaming bill passed, without revealing their personal stance on the issue.

“That played a crucial role in determining the bill’s final result.”

Rita supported the rule’s original intent, emphasizing that the main emphasis is on traditional physical casinos.

Tim Butler, Rep. 

Butler and Rita both concurred that this clause was crucial for the approval of the 2019 expenses.

Rivers Casino’s Rush Street Interactive

Although no representatives from Rivers Casino addressed the issue during the hearing, it is important to mention that Rivers has previously expressed opposition to online registration.