IL lawmakers push for legal online casino with cannibalization prevention measure
Illinois lawmakers have filed a pair of companion bills that would create the Internet Gaming Act to legalize online casino in the state.
Sen. Cristina Castro’s SB 1963 and Rep. Edgar Gonzalez’s HB 3080, both filed this week, would allow the Illinois Gaming Control Board to regulate online gaming.
Operators would pay $250,000 for an initial license and would be able to offer as many as three skins. Caesars has multiple retail casinos in the state, while BetRivers owner Rush Street Interactive is headquartered in Chicago.
Online casino would be taxed at 25% of adjusted gross revenue, and all tax revenue would be deposited into the State Gaming Fund.
A provision within the bills would prevent the board from awarding or renewing an iGaming license for an organization that has reduced its workforce by 25% or more since Feb. 28, 2020, or since first receiving a license. This includes workforce at retail casinos. Many critics of online casino worry that the new vertical will reduce foot traffic at retail casinos and lead to job loss within the state.
The pair of bills have been referred to respective committees in the Senate and House. The act would be effective immediately on being signed into law.
Gaming companies would have to detail diversity efforts
Noting that the public policy of Illinois is to work with companies to improve their supplier diversity, all licensed online gaming operators would be required to file an annual report on their DEI measures.
That would include outlining spending for businesses owned by women, minorities, veterans, people with disabilities and small business enterprises, as well as and detailing future goals regarding procurement and increased diversity representation.
Operators would also be mandated to hold an annual public workshop and job fair on the state of supplier diversity to collaboratively work to remove barriers to diversity, equity and inclusion in gaming.
The act would also clear the way for multi-jurisdictional online gaming.
On the supplier side, the board would offer fast-tracked applications for iGaming suppliers who are already licensed to offer sports betting solutions in the state.
Illinois also considering DFS revamp
Illinois already has a robust online sports betting market, with bet365’s license approval late in 2024 taking it to 10 online sportsbooks. It is the fourth state after New York, New Jersey and Nevada to eclipse $40 billion in all-time sports wagering handle.
The state made headlines in 2024 when it introduced a new progressive state sports wagering tax, with a scale starting at 20% and going as high as a maximum of 40%.
The new online casino bills aren’t the only gaming legislation currently being considered. State Sen. Lakesia Collins’ SB 1224 would legalize all DFS contests, including both peer-to-peer and against-the-house contests. DFS would separate and distinct from sports wagering and would be taxed at somewhere between 10% an 15% of adjusted gross fantasy contests receipts.
https://sbcamericas.com/2025/02/07/illinois-bills-propose-online-casino/