Illinois lawmakers pushing for online casino legalization

A pair of lawmakers want Illinois to join the states in the United States to push for the introduction of online casinos. This comes as Senator Cristina Castro and Representative Edgar Gonzalez have plodded on with a pair of bills that would make it possible to accept digital wagers on online casino games of chance, with some six-odd states in the country now allowing iGaming.

The bills, SB 1963 and HB 3080 outline the exact rules that a possible legalization would follow in order to establish a thriving iGaming industry that puts consumer well-being front and center.

Pair of bills seek to legalize online casinos

For starters, the bills would seek to tax casino iGaming revenue at25% and would allow licensed venues to hold up to three individually branded gaming skins, meaning that each approved property would be linked to up to three online casinos. Importantly, the twin bills insist on a "tethered" approach rather than traditional online casino gaming.

Tethered iGaming has been the go-to for most lawmakers in the country, as they fear Internet gambling would cannibalize land-based venues’ revenue and not offer anything in return. By tethering online casinos to land-based properties, physical venues get a part of the money as well.

Representative Gonzalez and Senator Castro feel strongly about the prospects of the bills to truly turn this legislative move to the state’s advantage, as iGaming is generally hailed as the more lucrative vertical when compared to sports betting.

Illinois is no stranger to legalized sports betting either, as the state has a vibrant betting industry, and it offers commercial casinos as well. The next step would be to further expand on that track record, the legislators believe.

They are drawing parallels with legal video gaming terminals that are a huge contributor to tax revenue when it comes to gaming operations in the state. In 2024, close to $1bn was paid in tax as well as support for local municipalities.

VGTs likely to object to this move

The bills will seek to fund the State Gaming Fund, which offers money for education in the state. Representative Gonzalez and Senator Castro are not necessarily betting on the bills to pass in the session, but there is definitely an auspicious moment for them to try.

Gov. JB Pritzker is worried about a gaping $3bn budget deficit that Illinois will have to find a way to deal with.

The extra revenue from iGaming revenue could help contribute towards tackling the issue. However, VGT operators and venues may not be too happy to find out that their sector may now need to share revenue with an emerging and arguably more popular gaming vertical.

Not much is certain about the future of iGaming in the current legislative session, but Representative Gonzalez and Senator Castro are going to give it their best shot.