On November 7, 2024, Illinois marked a significant milestone in its gaming industry with the opening of the Wind Creek Casino in East Hazel Crest. This new development was a welcome addition to the state’s gaming industry as it looks to expand the local gambling sector.
While the new casino is certainly welcome, 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. While on paper this seems like the perfect move economically, there are however other concerns that make the matter a trickier one than meets the eye.
The Expansion of Physical Casinos in Illinois
The USA in general has always loved gambling in all its various forms. Between the lights of Vegas and Atlantic City to the thriving online casinos of states like Pennsylvania and New Jersey, gambling is a massive business in the states. All that isn’t even counting the nation’s love affair with sports and the colossal sports betting industry that complements it. Closer to home, the story is a little more nuanced.
Illinois has a rich history of gambling, with the first riverboat casinos launching in the early 1990s. Over the years, the state has expanded its gambling landscape to include various forms of gaming. The recent opening of the Wind Creek Casino in East Hazel Crest is a testament to this growth. This $440 million project is expected to generate significant revenue and create numerous jobs in the region. The casino features a gaming floor with over 1,300 slot machines and 56 table games, alongside dining and entertainment options.
Early Attempts to Legalize iGaming
However, whether you’re into online poker, online blackjack, slots, or online roulette, the iGaming industry has something for everyone. These sites provide a vastly more engaging way to play these games. For example, sites that offer roulette provide a variety of ways to bet on it, different versions of the game, and a multitude of ways to pay, including cryptocurrency.
Between perks like generous welcome bonuses, instant withdrawals, and demo modes to practice games, there are a variety of reasons why iGaming is growing more popular by the year. To that end, the push to legalize iGaming in Illinois began in earnest in the early 2010s.
In 2012, the Illinois Senate passed a bill that included provisions for online gambling. However, the bill faced opposition in the House and was ultimately vetoed by then-Governor Pat Quinn, who expressed concerns about the expansion of gambling and its potential social impacts.
Renewed Efforts and Legislative Proposals
While the idea died off for a while, it was later reignited. Like most of the nation, in 2018, after the famous striking down of a federal law that prohibited states legalizing sports betting, most began pursuing local sports betting industries. This mushroomed within no time, leading to one of the most thriving industries across the country today. Although handled on a state-by-state basis, the sports betting industry has grown into a gargantuan sector.
To capitalize on it, in 2019, Illinois made significant strides by legalizing sports betting as part of a comprehensive gambling expansion bill. This legislation also authorized the construction of new casinos, including one in Chicago. Despite these advancements, iGaming was not included in the bill.
In 2021, State Representative Bob Rita introduced the Internet Gaming Act, aiming to legalize online casino games and poker. The bill proposed a tax rate of 12% on gross gaming revenue and allowed existing casinos and racetracks to offer online gaming. However, the bill did not advance beyond the committee stage.
Challenges and Opposition
The challenges and opposition to the legalization of online casinos in the state have been many and varied—as it is in many other states. Among these issues is the fear of cannibalization of the casino industry. Operators fear that online gaming could cannibalize their revenues.
Additionally, there are concerns about the social ills of gambling and the need for robust regulatory frameworks to protect consumers. However, in many other states and jurisdictions Political disagreements have also played a role, with lawmakers divided on the best approach to expanding gambling in the state.
Strictly speaking, for a long time all types of gambling were illegal in Illinois. By 1990, the state had begun allowing riverboat casinos with the idea that casinos floating on the water would inhibit the reach of gambling. However, by 1999, the state began allowing land-based casinos as well and now offers a range of both.
However, the stance against online casinos has remained steadfast for a long time too. Unlike many other states, Illinois doesn’t solely prohibit online casinos because of state compacts with local tribes. Instead, this state has more of a social opposition to the practice in general as it jealously guards against the type of social ills often associated with the practice.
However, regardless of the reasons behind its opposition, state lawmakers have failed repeatedly to make online gambling legal in the state. However, the rise of online gambling in other states and the significant amounts of tax revenue derived by states like New Jersey have been placing pressure on other states, like Illinois, to follow suit.
Economic Considerations
Proponents of iGaming argue that legalization could provide a substantial boost to Illinois’ economy. Estimates suggest that online gaming could generate hundreds of millions in annual revenue. For instance, neighboring Michigan, which legalized iGaming in 2021, reported over $1 billion in online gaming revenue in its first year.
Tax revenues from iGaming could support public services and infrastructure projects. However, opponents warn that the financial perks may not be enough to offset the potential social costs associated with increased gambling accessibility. However, the same worries have been consistent throughout every region of the world that has considered regulating iGaming.
In most cases, regulators responded by taking a measured approach to the way they chose to add frameworks designed to protect consumers. For vulnerable players, most states choose to use voluntary self-exclusion programs that help players limit their playing time. However, there are a range of other ways to protect players too as iGaming systems can easily be configured to build in limits and factor vulnerable players and the need to protect them into the equation.
Another modern solution is beginning to present itself in the form of AI-driven online casinos. These supercharged platforms use complex machine-learning models to build up accurate profiles of players. These can then be used to analyze a player’s risk profile and recommend limits long before their playing habits ever actually become problematic.
Another good reason for the state to consider legalizing iGaming is all the good that could come from it. In that sense, Illinois is known for its commitment to social services, the costs associated with many of these crucial programs have been a point of contention in the past. The sizable revenue boost that would accompany a legal iGaming regime in the state would go a long way toward alleviating this pressure.
The Role of Tribal and Commercial Interests
The dynamics between tribal and commercial gaming interests are critical in Illinois’ iGaming debate. Tribal casinos operate under federal regulations, giving them certain protections and privileges and have established a huge foothold nationally with brands like Hard Rock. They have raised concerns about the impact of online gambling, fearing it could reduce traffic to their physical casinos. Online platforms are seen as direct competition, especially as they can attract players from home, avoiding the need to visit a casino in person.
Ensuring a fair framework that respects existing agreements with tribal nations is challenging. Tribal interests are deeply invested in the outcome, seeking assurance that their revenue streams and established rights won’t be jeopardized. Crafting balanced legislation requires careful negotiation, with all stakeholders actively involved. A cooperative approach is essential for any progress on the issue.
Public Opinion and Social Impacts
Public opinion on iGaming remains divided in Illinois. Many residents appreciate the convenience and entertainment of online gaming, believing it could enhance the state’s gaming options. Others worry about the increased risk of social issues and potential financial problems it could cause for some players.
However, either way, effective responsible gaming measures are crucial. Resources for support, education, and prevention will be needed to minimize harm. These social impacts are a serious consideration in the legislative process. To that end, most major players in the iGaming industry worldwide have a vested interest in responsible playing and fostering the conditions to ensure it happens.
Future Prospects and Conclusion
As of November 2024, Illinois has not legalized iGaming, despite continued legislative pushes. Challenges remain, from balancing economic and regulatory issues to addressing social concerns regarding existing gambling brands like the state lottery. However, the advantages, including increased state revenue and stronger consumer protections, keep the discussion alive.
The future of iGaming in Illinois remains uncertain but hopeful, as ongoing dialogue among lawmakers, industry stakeholders, and residents will shape its direction in the years to come. For now, it seems very likely that iGaming will one day be legalized in this state and most others that still haven’t taken the leap.
Given how much more digitized the world has grown, it’s only a matter of time before the public’s growing demand for convenience leads to the industry making its mark here. However, when it happens, the state will have a responsibility to ensure it implements iGaming in a safe and responsible way.