Illinois Doubles Down on iGaming: Two Bills Aim to Deal a New Hand for Online Casinos
Proposals establish a $250,000 initial licensing fee and a 25% tax
Illinois Goes Back for Round 2 on Online Casinos
The cards are out again in Illinois as lawmakers took another spin at legalizing online casinos last Thursday, February 6th. Representative Edgar González, Jr. filed HB 3080 in the House and Senator Cristina Castro put her money in the Senate with SB 1963. Both bills, dubbed the Internet Gaming Act, aim to bring casino floors to the fingertips of Illinoisans.
This legislative push is significant for several reasons. If approved, the potential of residents playing blackjack for money using a mobile gambling app could result in a serious payday.
After all, the land of Lincoln has become one of the biggest sports betting markets in the US, since launching in January 2022. It would also mean that Illinois would become the 8th state to approve regulations for legit gambling sites.
Online casinos in Illinois could be a goldmine. A 2022 Morgan Stanley study projected if the state went digital, it could make over $1.3 billion in 2025 alone.
Breaking Down the Bills
HB 3080 and SB 1963, the twin pillars of the proposed Internet Gaming Act, share many key online gambling regulations:
- Legalization of Internet Gaming: Both bills seek to legalize internet-based versions of popular casino games, ranging from slots and poker to table games, under the oversight of the Illinois Gaming Board.
- Licensing Framework: The bills set an initial licensing fee at $250,000 and a renewal fee of $100,000, with a limit of three online casino skins per licensee.
- Platform Requirements: All online wagering must be hosted on a secure server. Initial flexibility on server location that tightens after the first year. Age and location verification to ensure only eligible players in legal jurisdictions can play.
- Taxation and Revenue: 25% privilege tax on adjusted gross gaming revenue. Funds go to the State Gaming Fund as in existing gambling regulations.
- Responsible Gaming: Both bills mandate responsible gaming measures, including self-exclusion programs and wagering limits.
“Many gambling operators and gambling enthusiasts feel the time has come for the state to truly embrace the industry and finally make a concerted push to legalize iGaming.” #Illinois #Gaming
iGaming in Illinois: The push for legalization | Trending From Our Network |…
— Chris Nybo (@chrisnybo) February 7, 2025
Road Bumps & Regulatory Challenges
But the road to online casino expansion isn’t a straight flush. Previous legislative attempts have failed and others are holding their cards close to the chest.
The biggest wild card in this game is the Video Gaming Terminal (VGT) industry. With over 48,000 machines across Illinois generating billions in revenue. Critics argue that online casinos will cannibalize the revenue from VGTs and existing cash casinos. There are also concerns about job losses at brick-and-mortar establishments.
This makes it tough for lawmakers as the bills have workforce retention requirements. For example, gambling regulations such as a licensee can’t have their license renewed if they reduce their workforce by 25% since February 28, 2020.
Security and data protection are other big hurdles. Both bills require top-of-the-line data protection for sensitive customer data.
Illinois is one of several online casino candidate states with a massive budget deficit. However, as I explain in today’s STTP newsletter, the opposition in IL is intractable.
There’s a chance, but it will take the equivalent of threading a needle in a hurricane.
A 🧵 1/3 pic.twitter.com/dtxEWzJmTX
— Steve Ruddock (@SteveRuddock) January 8, 2025
Joining the Party: The National Landscape
Illinois isn’t the only state making waves in the casino news world. Indiana and Maryland are also making moves. As of February 2025, only 7 states have local operators.
More and more states are coming around to the realization that online casinos are a good idea. So the pressure is on for Illinois to make their move. Will Illinois roll the dice and go online?
Only time will tell if this legislative hand will be a winner.
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