## Illinois Lawmakers Weigh Legalizing Internet Casino Gambling
Illinois’ gambling landscape, already diverse with racetracks, riverboat casinos, and widespread video gaming terminals (VGTs), is poised for another potential expansion: internet casino gambling, or iGaming. The upcoming legislative session will see a renewed push from gaming interests to legalize online slots, blackjack, poker, and other casino games, potentially generating significant new revenue for the state.
The state’s current fiscal challenges, with an estimated $3 billion budget shortfall, are fueling the argument for iGaming’s legalization. Proponents, including State Senator Cristina Castro, highlight the potential for substantial tax revenue, estimating $450 million within a year of implementation, eventually reaching $800 million annually. This revenue stream is seen as a crucial tool to address the budget deficit and could prove more palatable to constituents than other revenue-generating measures.
However, the proposal faces strong opposition. Critics, such as State Representative John Cabello, argue that iGaming would cannibalize existing businesses reliant on VGTs, including bars and restaurants, leading to significant revenue losses and potential job cuts. He paints a bleak picture, claiming it would be “cutting off the nose and spiting the face.” This concern is echoed by Keith Wetherell, executive director of the Illinois Licensed Beverage Association, who estimates a potential 40% revenue drop for some establishments. He further points out the loss of local government revenue sharing from VGTs, highlighting that much of the profits currently go to large, out-of-state corporations rather than benefiting Illinois communities directly. Cabello also criticizes Chicago’s exclusion from VGTs, viewing it as a missed opportunity for revenue generation.
The current gaming tax revenue in Illinois is already substantial, reaching a record high of $2.1 billion in the fiscal year ending June 2024. This includes contributions from casinos, sports betting, video gaming, and the lottery. While several other states have successfully implemented iGaming with significant tax increases, opponents argue that Illinois’ already saturated market will simply shift existing gambling activity online, creating minimal net benefit.
The proposal also faces criticism from public health advocates who warn of a potential surge in problem gambling. Les Bernal, national director of Stop Predatory Gambling, vehemently opposes the measure, referring to it as “gambling fentanyl,” highlighting the easy accessibility and addictive nature of online gambling. He points to existing data indicating a significant number of Illinoisans with gambling problems or at risk of developing them. While proponents highlight the potential for responsible gaming features like wager limits, opponents counter that these measures cannot fully mitigate the inherent risks.
Despite past lobbying efforts from companies like DraftKings and FanDuel, which ultimately led to tax hikes on sports betting, the Sports Betting Alliance is now pushing for iGaming. Their president, Jeremy Kudon, argues that iGaming targets a different demographic than existing gambling options, attracting younger, higher-earning individuals. He contends that legalizing and regulating the already existing illegal online gambling market is the responsible path forward. However, the concerns of bar and restaurant owners and public health advocates remain significant obstacles to passage. The debate will likely continue throughout the legislative session, with the final decision shaping the future of gambling in Illinois.