Illinois’ Internet Gaming Act Faces Uncertainty Despite Early Momentum

In 2024, Illinois had a real opportunity to become the latest state to legalize online casinos, riding on the back of its Internet Gaming Act. Filed in the previous year by Sen. Cristina Castro and Rep. Edgar Gonzalez Jr., the bill carried over into 2024, thanks to Illinois’ two-year legislative session. The legislation was reassigned to the Executive Committee of both the Senate and House on Jan. 10, keeping the bill in play.

Yet, as the year progressed, the silence from Illinois’ lawmakers in late 2023 started raising concerns among proponents of iGaming. On paper, Illinois seemed well-positioned to be a prime market for online gaming, with an appetite for expanding gambling options already demonstrated in other sectors. However, stiff opposition from influential groups, including retail casino unions and the video gaming terminal (VGT) industry, has proven to be a significant barrier.

Key Roadblocks for Legalizing iGaming in Illinois

While Illinois has already embraced sports betting and expanded its video gaming terminal footprint, the transition to legal online casinos has faced challenges. One of the biggest obstacles has been the organized resistance from retail casino unions.

These groups have expressed concerns that the legalization of online casinos could eat into revenue and job opportunities at brick-and-mortar casinos, which rely heavily on foot traffic and in-person gamblers.

The Illinois Gaming Board oversees the state’s gaming industry, which is subject to strict regulations, making any potential changes in the law a complex process requiring careful consideration of economic and labor impacts.

Additionally, the state’s powerful video gaming terminal industry has pushed back against the bill. Illinois has more VGTs than any other state, and the operators of these machines fear that online casinos could divert players away from their machines. With their influence firmly rooted in the state legislature, opposition from VGT interests poses a formidable challenge to any online gaming initiative.

Despite these challenges, Rep. Gonzalez remains hopeful about the bill’s prospects. He told Bonus that his primary goal for 2024 was to spark a Committee discussion about online gaming, acknowledging that the path to legalization would be a long process. He ensured that, by Jan. 31, the bill advanced to the House Gaming Committee, securing a hearing, a move that kept the conversation alive.

Legislative Progress Stalls Amid Political Distractions

The bill’s progress wasn’t limited to the House. By Feb. 7, the companion bill in the Senate, filed by Sen. Castro, was similarly advanced to the Senate Gaming Committee, according to records from the Illinois General Assembly. The move to committees in both chambers signaled that lawmakers were willing to engage in discussions about legalizing online casinos, marking a positive step forward for proponents.

However, 2024 has not been without setbacks. Rep. Gonzalez, who has been embroiled in a heated primary race for re-election, has had his focus split between his legislative duties and his campaign. This distraction led to his absence at a critical committee hearing in March, where the bill might have gained further traction. With Gonzalez’s attention diverted, the bill remained in limbo as the legislative session drew to a close in June.

For now, the future of online gaming in Illinois remains uncertain. While the bill is still alive and could resurface when the legislature reconvenes, the significant opposition from unions and the VGT industry may continue to stall its progress. Even with legislative discussions ongoing, the bill’s fate will depend heavily on the political dynamics within the state and whether advocates can overcome the powerful interests opposing it.

Though Illinois seems like a strong candidate for online casino legalization on paper, its path forward is far from guaranteed. For now, the state remains one to watch as 2024 progresses, with online gaming advocates hoping for more favorable developments in the months ahead.

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