Why The Illinois VGT Industry Doesn’t Want Online Casino Legalized

The time is running out to go Illinois virtual casino legislation this session.

Despite the presence of bills in the House and Senate aimed at broadening the scope of online casinos, Video Gaming Terminal (VGT) operators are strongly against it due to fears of cannibalization.

During a House Executive Committee meeting in late April, representatives both for and against online casinos presented their arguments.

In the end, it was evident that the most significant obstacle to legalizing online casino gaming in Illinois is the VGT industry.

Let’s delve deeper into Illinois VGTs and understand why their operators are against the expansion of online games.

In Illinois, what are VGTs?

VGTs are similar to the slot machines you might encounter in a game. You can find VGTs at:

• Child pleasure stores
• Bars
• Fraternal organizations, gathering places, lodges, and so on.
• petrol facilities
• wine shops
• Nightclubs
• Restaurants
• Taverns
• Vehicle halts
• Examples include soldiers, companies, and gathering places like VFW halls.

Illinois is home to nearly 40,000 VGTs.

These kinds of companies can gain an additional revenue source through VGTs.

In April alone, the state of Illinois generated nearly $70 million in tax revenue from VGTs.

Despite the vast number of Video Gaming Terminals (VGTs) in Illinois, most companies that own them aren’t profiting. However, it serves as an additional revenue stream during a period when numerous bars and restaurants are still grappling with the fallout from the COVID-19 pandemic.

The conflict exists between supporters of online casinos and VGT users.

VGT providers are afraid of cannibalism and rsquo.

During the House meeting discussion on online casinos and VGTs, witnesses often mentioned the terms “cannibalization” and “ldquo”.

The worry for VGT users is that players might be deterred from playing at them due to comparable game selections in legalized online casinos.

In August, State Sen. Dave Syverson explained to Play Illinois why there might be substantial opposition to the expansion of internet gaming:

The small quantity of video games currently present in bars and restaurants could potentially help them stay afloat, especially given the recent devastation caused by Illinois’ excessively strict COVID regulations. According to We, many of these establishments could face closure if they were to lose Video Gaming Terminal (VGT) revenue to online platforms.

At the conference, State Representative Tim Butler was the most vocal critic against the legalization of online casinos. He stated that small-scale, non-gaming businesses depend on the revenue generated from Video Gaming Terminals (VGTs).

Butler also expressed objections to the argument presented by the supporters, which primarily concentrated on how online casinos wouldn’t negatively affect traditional casinos, instead of focusing on VGTs.

During the hearing, Jeff Kaplan, the Vice Chairman of Proper Financial Planning at Penn National Gaming, referred to cannibalism in physical casinos.

Before the pandemic hit, we analyzed our customers to determine if there had been any reduction in our physical store income, and we found that iGaming was nearly identical to our offline play.

Hence, it’s encouraging that physical establishments are supporting the legalization of online casinos in Illinois. However, Video Gaming Terminals (VGTs) still pose a substantial obstacle.

In response to concerns, advocates for online casinos highlighted that VGT clients are usually older than online gaming customers.

Will playing at an online casino definitely cannibalize VGTs?

The issue worth a million dollars is that we cannot speak with certainty. This is due to the lack of substantial information on the subject.

This one does not include a case study that provides an apples-to-apples comparison. Most states do not allow both virtual casinos and VETs.

From the perspective of VGT, the reasoning is clear. Given the similarity in game options and the increased accessibility of online casino games, the link is not difficult to comprehend.

On the other hand, online casino providers are targeting a different audience than VGT customers, as opponents pointed out during the hearing. The aim is to attract more people to video games rather than to eliminate the VGT market. Supporters contend that both businesses can coexist.

Recently, the State Senate introduced a bill demanding a report on the potential online casino revenue that Illinois could have generated if internet gaming was legalized before the pandemic. The report is due by Oct. 1, 2021.

While this isn’t good news for online casinos in the Land of Lincoln this session, the future seems a bit brighter.