Since June 2012, the state of Illinois has made great strides in the regulated gambling space. Now, with a new piece of legislation, lawmakers are looking to build on that foundation by opening up the market even further.
In what capacity? Online casinos.
That’s right, an Illinois online casino bill is currently making its way through the legislative process. If everything falls into place, this midwest region will have a thriving i-gaming industry.
As of now, Illinois is home to land-based casinos, a state-wide intrastate lottery, fantasy sports sites, and legal sports betting.
Following the success of the latter, lawmakers believe it’s time to allow casinos to extend their services online.
The first step was introducing a bill. On March 16, 2021, Michael Zalewski did just that. If his proposal gathers enough support and makes its way past the governor’s desk, the Land of Lincoln becomes the next midwest region with a flourishing i-gaming industry.
Today, I want to look at the current state of online gambling in Illinois and what the future might hold.
Latest Development — April 7, 2021
On Wednesday, April 7, the Illinois Gaming Board met to discuss several applications.
One of which belonged to Rush Street Interactive (RSI)—the digital division of Rivers Casino. In early 2020, this operator launched a legal online sportsbook under the Rivers brand.
Now, it wants to offer online casino games to the people of Illinois. Considering it’s one of the operators attached to the currently active Illinois online casino bill, it only makes sense.
Online Casino Games with the Biggest WinsAnyway, the Illinois Gaming Board “unanimously recommended” to grant Rush Street Interactive a 5-year license to operate an online casino.
This is huge because it would be the first online casino in Illinois (if the bill passes). Not only that, it means we could see another state go multi-state when it comes to online gaming.
For those of you who don’t know, RSI already has experience running an online casino and linking it to an American lottery. Through its BetRIVER Casino brand, it offers various game types to the people of Pennsylvania. What’s important to note is that this site is linked to the Pennsylvania Lottery, thus making it an online casino and lotto.
Given this, it wouldn’t surprise me if Rush Street International offered something similar in Illinois. That is, provided the online casino bill passes, of course.
Other highlights from this meeting include online bingo being classified as a lottery function, and Scientific Games Consumer Software getting the green light to run an online lotto. As always, I strongly recommend you to check out the official minutes once they’ve been published.
Before you do that, let’s talk about the latest developments regarding the Illinois online casino bill.
Latest Development — March 31, 2021
On March 31, 2021, Illinois’ House Revenue and Marketing Committee scheduled a hearing for Monday, April 5. During this hearing, lawmakers will deliberate over HB 3443, which, of course, is the bill that could bring legal online casinos to the state.
3 card poker online real moneyGiven that this is the first major development since the end of March, it’s unclear whether lawmakers have been working behind closed doors or not. That said, based on what Representative Michael Zalewski had to say when he submitted the bill on March 16, 2021, it should have a relatively smooth ride.
He believes it will pass.
From what I can gather, the legislative process will take anywhere from four to eight months before it’s ready for Governor Pritzker to sign. Keeping this in mind, it’s possible for HB 3443 to become law in October 2021.
It’s also worth noting that the American Gaming Association is holding its annual conference in Chicago between September 27 to 29. Traditionally, there have been notable gambling announcements around this time of year. For example, last year, former President Donald Trump signed the National Defense Authorization Act (NDAA), which contained the US online gambling bill of 2019.
casinos near port st lucie floridaOf course, this is pure speculation on my part. That said, it’s always good to keep your eyes and ears open.
What you should do is stay here at GamblingSites.com for the latest updates on the Illinois online casino industry.
Latest Development — March 29, 2021
On March 25, 2021, HB 3443 was sent to the House Rules Committee. Three days later, it was moved to the house calendar for Thursday, April 1. Basically, this means lawmakers will decide whether to reject, approve, or amend the bill during this session.
If approved, it will move closer to Governor J.B. Pritzker’s desk. He’ll then choose to either sign or veto it.
Given that most politicians in Illinois seem to be in favor of this, it’s likely to make its way to the governor. Provided he’s onboard, the first Illinois online casinos could launch during Q4 of 2021.
By “first,” I’ m referring to whichever operators are up and running by then. It could be the case that regulators give existing sportsbooks/online casinos first refusal. That said, there’s nothing to suggest this will happen. Therefore, it’s down to each operator to apply for a license and complete all the necessary checks.
Again, this probably won’t happen until after the legislation is confirmed. Even then, it could be months before anything is ready for public consumption.
In short, it’s all systems go for Illinois online casinos. The first reading of the bill took place on March 23, 2021. By Tuesday, March 30, the house will, or should, vote on whether to approve it.
Fingers crossed.
Legislative Process So Far
On March 16, 2021, Illinois’ House of Representatives introduced a new bill that could change the state’s gambling landscape. Entitled HB3443, it was created and submitted by Representative Michael Zalewski.
Entrepreneurs looking to offer online casino services in Illinois must pay $20 million upfront and 20% in tax revenue. If HB 3443 follows the same format as other states, these fees sound far too high. For context, Pennsylvania charges $5 million upfront and 54% in tax revenue.
But there is a catch. Sort of.
How would this benefit an online casino owner in Illinois? Well, renewal fees are far more reasonable. Instead of paying $20 million every few years, renewal costs $1 million. This seems like much better value considering the initial setup fee.
Moreover, renewals aren’t annual things. Under HB 3443, licenses to operate an online casino in Illinois last for 10 years before needing to be reapplied for.
Another interesting point is that an online casino must be linked to an in-person brick-and-mortar venue. The bill states that each online gaming license shall be tethered to one master license held by an existing licensed IL casino.
Finally, the proposed legislation allows existing sportsbooks to convert to online casinos. Again, there is a caveat. They must submit an application before December 31, 2022. After this date, the master license will cost $10 million instead of $20 million.
Aside from the points above, HB 3443 creates the “inclusive gaming initiative.” The aim is to provide funding for inclusive entrepreneurship, workforce training, and scholarships for underrepresented communities. Based on what’s laid out in the document, this would be funded via a $500,00 annual transfer from the “State’s General Aid Funds” to the “Department of Commerce and Economic Opportunity.” From here, it would be disbursed to eligible organizations.
When Rep. Zalewski introduced this bill on March 16, 2021, he also called for two committees to review it. The first hearing took place on March 23, 2021. According to Poker Industry Pro, lawmakers voted 13-2 in favor of advancing the bill. The House Revenue and Racing Committee set the following timetable.
- March 31, 2021 – 9:00 AM. House Economic & Small Business Development Committee.
- April 5, 2021 – 10:00 AM. House Revenue and Marketing Committee.
Assuming everything goes smoothly at these hearings, the bill will need to pass through the House. If that happens, it would then enter the Senate and follow a similar process. Finally, assuming it survives the Senate, it’ll fall onto Governor Pritzker’s desk. Provided he’s in favor, Illinois will become the 16th state to offer regulated online casino gambling.
Potential Impact on Residents
I’m sure many people in Illinois are excited about the prospect of playing online casino games with licenses within the state.
Why? Because it brings numerous advantages. Firstly, you know the sites are safe and secure. Everything will be regulated, meaning any disputes can be taken to a higher authority. For example, what happens if you don’t get your winnings? With an offshore site, it can be hard to get justice. But if the casino has a license, the relevant authorities can intervene. Secondly, any games will have been tested for fairness. Rogue sites don’t necessarily use rigged RNG software, but accredited testing agencies rarely bother to certify them. Thirdly, you’re supporting the state economy in multiple ways. Tax revenue will help fund various projects. Moreover, responsible gambling measures will ensure you have the tools to stay safe.
Official impact reports don’t exist yet because the industry isn’t live. However, I can look at other states to make some educated guesswork. For instance, Pennsylvania generated $68.9 million in gaming revenue during 2020. Of this total, 54% ($37.3 million) went to the state. Based on these numbers, Illinois could be looking at roughly $40 million per year.
The online casino bill in Illinois is still young. We don’t know details such as how many taxes residents will have to pay, the number of licenses available, and so on. So my estimates are useless. But using the data from PA gives you a rough idea of what’s coming.
Regarding which operators will enter the space, it’s almost certain that existing sportsbooks will be among the first. This is thanks to a clause that allows them to convert without having to go through the entire licensing process again.
At the time of writing, the following sportsbooks are based in Illinois and are taking bets legally:
- BetAmerica.
- BetRivers.
- DraftKings.
- FanDuel.
- William Hill.
Again, it’s too soon to know what’s going to happen. If push came to shove, lawmakers could limit the number of licenses handed out. Another option would be to cap the amount of revenue an existing sportsbook can generate from online casino games.
A similar thing happened in Michigan. The law states that a single company cannot offer more than 51% of the state’s total sports betting revenue. The same principle could apply to online casinos.
With all that being said, I expect the likes of BetRivers Casino and DraftKings Casino to be among the first online casinos in Illinois. That is, assuming DraftKings converts its existing sportsbook.
You may be wondering why I’ve picked these two sites.
Well, BetRivers is owned by Rush Street Gaming. This is the company that already has an online casino in nearby Pennsylvania. Given that it has experience, relationships with banks, and a brand that’s proven successful, it would be foolish not to apply for a license.
As for DraftKings, well, it’s the largest sports betting company in the US. If this firm doesn’t apply for an online casino license in Illinois, something would have gone awry.
Other potential entrants include Caesars online casino and Borgata online casino. Why? Because their respective parent companies own brick-and-mortar casinos in neighboring Iowa and Indiana, respectively.
Again, nothing is set in stone. Over the next few weeks and months, we should start to get a clearer picture of what’s happening.
For example, the acceptable number of casinos.
Based on what’s happening elsewhere in the United States, I don’t think there’ll be many. New Jersey and Pennsylvania have around twenty each. Then again, New Jersey is one of the first states to go live, and it’s a much bigger market than Illinois.
Ten fully loaded casinos would probably generate 70-80% of the potential revenue. So even if only five licenses became available, I don’t think many people would feel left out.
Speaking of being left out, what about you?
If you’re living in Springfield, Rockford, Peoria, or any other city inside the state, you’ll probably be able to play real money slots and table games online later this year.
Of course, we’re still many months away from knowing exactly what’s happening. And even if the bill gets the green light, it’ll be a while before everything is in place.
For example, each operator will have to build its site from scratch or pay millions for a white label. Then there are the technical aspects, such as integrating with geolocation services to ensure everyone playing is indeed in Illinois. Add all this together, and it could easily be Q4 of 2021 before everything is in place.
So, my advice? Be patient.
Casino Bonus Programs With the Best Return to Player RatesIf you want to play real money casino games online, the best approach is to use offshore sites. Before you panic, hear me out.
Yes, they’re based outside of Illinois/the US. No, they aren’t regulated by the state/federal government. But what they do offer is a wide range of games, promotions, and features. Some even accept players from numerous states.
Best Fanduel Casino Games – Top Casino Games on FanduelFor example, Ignition Casino stands out as one of the top online casinos in Illinois, despite not having a local license. Why? Because it accepts players from the Land of Lincoln and has hundreds of games. From blackjack and slots to jackpot chasers and live dealer games, there’s something for everyone at this site.
Another advantage of using offshore sites is that you can use cryptos. Many regulated sites in other states accept Bitcoin et al; however, some do not. So if you want to pay with crypto at an Illinois online casino, your only options right now are offshore sites.
My main advice here is to stay tuned for more updates on the Illinois online casino bill. It’s an exciting time to be a gambler in America’s midwest region.
Footnotes:
- Details of HB3443 are courtesy of .
- Information about the hearing schedule comes from .
References
Andrew is a freelance writer specializing in US gambling markets. He follows hundreds of slots games and tracks the latest news and rumors regarding leading gambling brands.
When not working, Android enjoys watching sports (soccer and basketball chiefly) and playing the latest games on his iPhone.
