The gambling industry in the United States is growth at an alarming rate as more states open up their market to the benefits associated with the sector. In the state of Illinois, the legislators are eyeing online casino gaming as the next betting frontier in the jurisdiction. By adding legal online casinos onto the list of the state’s legal betting portfolio, it would be a great milestone in advancing the industry. This development is expected to take place in 2023.
Currently, Illinois has gambling industry investors providing video gaming terminals, horse racing, lottery games, retail casinos and sports betting. The missing piece in this puzzle appears to be iGaming and that is what the lawmakers are rushing to resolve. If the motion supported unanimously one it hits the assembly floor, it is likely that the people of Illinois will not have to wait much longer before the goodies of iGaming land at their doorstep. Although there is potential in opening up a market to more betting options, the fact is that legalization is a process that might be easier said than done.
What we cover
The progress of online gaming in Illinois
People love comfort and the power to achieve more without having to break a sweat, by allowing gamblers an easy and hustle free alternative for placing bets and receiving bet wins, internet casinos are offering convenience that many people would not want to give up. Classic casino games such as slots and blackjack can now be accessed and played from one’s own home through online casino gaming. Online poker has also made its way into this mix and the number of people who sign up for annual poker tournament is testament of the positive reception.
The nature of online gaming is that the wave of advancement catches on very fast due to rapid knowledge sharing of what is happening in other parts of the world. The gamblers of Illinois, just like their counterparts in other regions of the US, have become accustomed to the level of convenient gaming that online based sports betting offers.
Profitability of online casinos
In January 2021, Michigan introduced online casinos to its gambling portfolio and since then the revenue curve has been on an upward rise. The collected bets drawn from the various gambling companies are estimated to sum up to about $1.6 billion. This amount is inclusive of the $427 million paid to the state government in way of taxes.
Compare these financials to those of Illinois which has since March 2020, raked in $900 million worth of sports betting revenue and paid taxes amounting to $140 million. It is obvious that Illinois needs some pushing to match up to other states. Adding gambling options in just one way of pulling in the money and is so far the most promising. Simply put, the idea of online casinos is way more profitable compared to sportsbooks.
According to a report generated by the Illinois State Senate, the Land of Lincoln has great potential for improvement of revenue if accorded the chance. This is why the idea of having as many gaming options legalized in the state is quite enticing to legislators.
In 2021, Illinois lawmakers introduced the online casino bill but it is obvious that the move was not successful. Without much steam gaining up on the prospect of backing up the casino industry back then, industry experts predict that the next likely time for another attempt would be in 2023.
What could be working against Illinois iGaming?
Judging from the success stories of the iGaming sector in other parts of the US and the world as large, it is possible that online casinos would be a big win for gambling stakeholders in Illinois. In between the current state and a time when the entire gambling community is reaping the sweet fruits, is the legalization process that is not as easy as many perceive it.
The best way to think about gambling expansion is to consider that, like a coin, it is a concept that has both advantages and disadvantages. In Illinois right now, the operators of video game terminal (VGT) are having s field day. If iGaming is legalized, a large chunk of VTGs customers would probably no longer have need to walk up to a bar or restaurant for an online gaming experience. Ordinarily, this would push investors out of the market and hence the resistance.
Did you know that Illinois has the largest number of VGTs in the entire country? It means that many businesses thrive on their existence and would fight tooth and nail to maintain the status quo. Their concerns are valid from a business point of view; internet casinos would prey on any revenue that they currently generate. State Sen. Dave Syverson appreciates this and is open to the heavy pushback that VGT owners are likely to put up.
According to Syverson, people have only so much they are willing to spend on gaming or sports betting in Illinois. People will be at restaurants and bars and only then will they think of VTGs because they are there. Such venues offer video gaming to supplement their income and it would devastate them if this was to be taken away. Factor in current economic concerns and the 2023 timeline is still too ambitious for the Illinois market.
Final Thoughts
There a huge profits potential in embracing online casino gaming in Illinois but some people will have to pay a heavy price for this reality to be achieved. Given the fact that other legalized markets in the US have already tasted the benefits of online casinos, it is only a matter of time before the wave settles on IL. The next attempt at legalization of iGaming will be the second blow to the wall of resistance that many stakeholders have put up. How and when it goes down is just a matter of time.
