It’s been some time now since Gov. J.B. Pritzker signed the law that paved the way for legal sports betting as part of the state’s massive gambling expansion plan. In 2021, Illinois residents can place wagers on their cellphones at any online sportsbook or app. Or if they prefer, they can visit Rivers Casino in Des Plaines or any of the state’s 6 casinos to place a wager on your favorite sports team.
Where we are today
Even though legal online sports betting has only been around for ten months, the Illinois’ sports wagering industry has been booming. Thanks to a strong legal retail and mobile sports betting industry, Illinois recorded $7.7m in sports betting compared to the same period last year, which managed to generate $6.9m.
Of the $7.7m generated in February 2021, $6m was acquired from online betting while retail only generated $1.7m. During the length of the pandemic, online wagering has reigned supreme in states that have been allowing it. That’s why Gov. J.B. Pritzker administration has been on the forefront of legalizing online gaming in Illinois fully.
Illinois, among other US states, have been seriously considering legalizing online poker and iGaming as a whole since the pandemic struck. State representatives in Illinois have already introduced an internet gaming bill which could pave the way for the legalization of online gaming in all forms, including online poker.
Rep. Robert Rita (D) and Rep. Jonathan Carroll (D) are the two state representatives that co-sponsored the bill. If it becomes law, it could help Illinois to become a formidable force in the online gambling industry. The Illinois bill, which is also more commonly known as the Internet Gaming Act or IGA is expected to make slots, poker and other iGaming games legal in the state.
When the state legislature passes the bill, and our governor signs it into law, the Illinois Gaming Board will be responsible for overseeing the gambling industry in the state. If the iGaming industry in Illinois is legalized, online gaming operators would be taxed 12% of their gross gaming revenue with at least $10 million being set aside to fund gambling addiction programs. If the state approved this bill, Illinois will become the 6th state in the country to legalize iGaming and online poker.
So far, residents in the following states can play any type of online casino game online at their discretion:
- New Jersey
- Michigan
- Pennsylvania
- Nevada
- West Virginia
Online poker has only been legalized in Michigan for 3 months, having launched in January 2021 with PokerStars being the first legal operator in the Great Lake state. Even though iGaming is legal in West Virginia, none of the major operators in the country have launched their services in the state.
Furthermore, if Illinois should legalize online gamlbing, it would be free to enter into an interstate compact deal with any of the above states, which will give Illinois players access to even larger prize pools.
Illinois has a real chance of overtaking the above states when it comes to the amount of revenue generated. For instance, Pennsylvania is so far the largest state to enjoy legalized iGaming. However, the Illinois population of 12.7 residents is only approximately 100,000 people fewer than Pennsylvania. That means that when Illinois legalizes its iGaming market, it has a real chance of beating some of the more established states, as long as the right support is provided.
So what does passing the internet Gaming Act mean for Illinois?
While it is not exactly easy to estimate when the IGA will be passed, many local politicians are lobbying to fast track the bill. That’s because the state is in dire need of additional tax revenue, which have mostly been depleted by the pandemic. IGaming has the potential to produce millions in new tax revenue which will then help lower our budget deficit which continues to spiral out of control.
Once the bill is approved, the law will allow for a 90 days grace period for the state to adopt emergency rules for operators in the industry. The bill will also give the board the go ahead to issue temporary licenses to any companies in the region that already have sports betting licenses, which will make online gaming legal in the state quicker.
What should Illinois players know about a legal online poker market?
If online gambling is legalized, Illinois poker players should know that they will only be allowed to wager within the boundaries of the state. One downside worth nothing is that players will be required to register in person at either a racetrack or a casino before they can have access to an online gambling account. Fortunately, in-person registration will only be in place for the first six months after online gambling is legalized in Illinois, as we previously discussed.
Apart from Illinois, other states that are considering legalizing their iGaming industries include Connecticut, Indiana, Kentucky and North Dakota. Numerous states are dealing with the effect of budget shortages caused by the contagion. As such, as time passes, we should expect more and more to legalize internet gaming and poker as a means of funding their fast-dwindling state coffers.
Where the online gambling market could be heading?
Whereas Illinois is one of the latest states to approve online sports betting and, hopefully soon, online gambling, our state is not in any way original in its approach or timeline.
In fact, online gambling has been a huge industry in Western Europe for over a decade now where countries like the UK, Spain, Portugal and, recently, Sweden and Norway have found a regulatory framework that can balance players’ desires to gamble online while managing gambling addiction safely. Another great example of a country which has found a way to legalize online gambling is Canada.
As seen on megawaysslots.com, there are literally hundreds of online slots providers and casinos who operate legally, pay taxes, and collect taxes on behalf of online players across the world.
As Illinois attempts to find a way to expand the current legal framework to gambling, perhaps it’s best for our legislators to commission independent reports which can analyze and synthesize the current state of affairs for the online gambling industry and the common types of gaming establishments, both online and land-based and more. In addition, a lot of research has already been done which could inform a speedy decision in Illinois with regards to gross revenue by US casinos, by other US states, tax revenue from commercial casinos in the US and more.
Bottomline: Illinois is seriously hurting from a massive budget deficit with no plan to turn it around any time soon. All available data, from other US states and from Europe suggests that legalizing online gambling can bring more tax revenue to the state without increasing property or income taxes. Given all that, why we are still debating about whether to fully legalize online gambling is beyond my power of understanding.
Final Thoughts
If Illinois legalizes online gambling, it has the potential to become the second largest online gambling market in the country (only California, which is also currently assessing whether to legalize online gambling could surpass Illinois, as of 2021). The state already enjoys a lively and receptive gambling community that appears to be more accepting of online poker and other forms of gambling, particularly when it comes to slot games, roulette and blackjack. The truth is that there are already Illinois residents playing poker online on unauthorized online platforms.
However, Illinois has been losing out on taxable revenue to offshore betting sites. Hopefully that stops in 2021!
