The state of Illinois is, for the third year running, seeing an attempt from some senators to get internet gambling legalized, but not everybody thinks it will be the third time lucky.
With over 40,000 gaming machines outside of casinos than in any other state in the United States, the fear is, that if online gambling is finally allowed, it will pose a threat to the hospitality industry, according to a spokesman for the Illinois Licensed Beverage Association, as reported on the Just the News website recently.
The Illinois Gaming Machine Operators Association is unsurprisingly against the new bills, introduced to the House by Rep. Edgar González, Jr., D-Chicago, and the Senate by state Sen. Cristina Castro, D-Elgin.
These bills, if passed, would levy a 25% tax rate on adjusted iGaming revenue, raising potentially $1 billion annually in additional tax revenue from a range of online slots, live dealer options, and casino table games.
“Taking on an expanded vertical like this as you’re still settling the expansion of what you had for brick-and-mortar casinos and online sports betting, it’s a very tall ask of this state agency,” said industry expert Christopher Altruda.
“I think the video game terminals create a unique dynamic as it pertains to Illinois because they are so extensive throughout the state and the invested parties in terms of the bars and taverns made a very focused push on what would happen in terms of potential revenue cannibalization there as opposed to brick-and-mortar casino revenue,” said Altruda.
Both measures are currently stalled at the committee stage. Eight states currently offer online gambling.
