Legalizing online casinos in Illinois is one way the state could help address projected budget deficits after the exhaustion of pandemic-era relief funds.
Although bills to legalize Illinois online casinos failed in the recent legislative session in Springfield, lawmakers may reconsider in 2024. Currently, without revenue from online casinos, Illinois is projected to have a $384 million deficit in 2025, which is expected to increase to $708 million by 2028, according to Illinois Policy.
Without additional revenue, projections indicate that Illinois will accumulate a budget deficit of $2.3 billion from 2025 to 2028.
Supported by the American Relief Plan Act and higher-than-expected revenue, Illinois is expected to have a budget surplus of $3.55 billion in 2023. In fiscal year 2024, the emergency funds will no longer be available, and the total federal funding received by the state will decrease by $1.2 billion. However, projections still anticipate a budget surplus of $357 million in 2024.
Afterward, balancing the budget will become more challenging without additional revenue sources.
The same situation applies to several other states that may soon require additional revenue to compensate for the loss of emergency pandemic funds, as noted by Heather Fletcher at Bonus.com.
Parenting taxes isn’ t the response, Illinois previously has the finest taxes inside the nation
Illinois already has the highest combined state and local taxes in the United States, according to Illinois Policy. The taxes amount to over 15% of household income annually. Increasing taxes further is not a good option.
However, capturing a share of the billions of dollars currently being lost to illegal online gambling sites may help.
Illinois citizens bet various $1. sixty five billion about illegal internet sites, money certainly not captured by state
PlayIllinois has predicted that citizens of Illinois bet approximately $1.65 billion annually on illegal online casino sites. That amounts to about $660 million in lost revenue for the Illinois government.
Based on current tax rates for Illinois sportsbooks at 16% of revenue, legalizing online casinos could generate an additional $105.6 million in tax revenue annually.
In addition to helping fill the larger budget gap, PlayIllinois has also made suggestions on how that money could be used to fund Governor J.B. Pritzker’s economic priorities. These include:
- Reducing Illinois’ significant pension debt of $140 billion.
- Expanding funding for child care.
- Providing free in-state college education for low-income families.
- Continuing on the path of fiscal prudence.
- Attracting big employers to Illinois.
Legalization best way to defend Illinoisans, raise responsible wagering
At the same time, the state would be better off protecting its residents from being ripped off by black market operators.
Additionally, a significant portion of that money could be allocated towards enhancing problem gambling programs. Currently, all the money being wagered on illegal sites is being drained from Illinois.
In conclusion, regulating and taxing an activity that is already occurring and cannot easily be stopped is the better option. The revenue generated could be used to improve the quality of life in Illinois.
The state of illinois budget failures forecast in advance
In November 2022, the Governor’s Office of Management and Budget released the Illinois Economic and Fiscal Policy Report, which projected the following deficits:
- FY 2025 – $464 million deficit
- FY 2026 – $707 million deficit
- FY 2027 – $620 million deficit
- FY 2028 – $792 million deficit
Meanwhile, GOMB is predicting the revenue Illinois will receive from gaming and the lottery as follows:
- FY 2023 – $157 million from gaming / $665 million from the lottery
- FY 2024 – $100 million from gaming / $678 million from the lottery
- FY 2025 – $230 million from gaming / $692 million from the lottery
- FY 2026 – $255 million from gaming / $706 million from the lottery
- FY 2027 – $270 million from gaming / $720 million from the lottery
- FY 2028 – $270 million from gaming / $734 million from the lottery
Clearly, legal online casinos in Illinois can help boost revenue and reduce losses. Furthermore, regulated Illinois online casinos can contribute to funding pensions, improving childcare, providing access to free in-state college tuition for low-income families, and attracting major employers to the state. All while protecting Illinois consumers from the potential risks associated with an activity we know they are already engaged in illegal – gambling.
Dave Briggs is an editor and even a writer who writes for Catena News flash. His know-how is in the field of gambling in America, with a focus on modern casinos, sports betting, horse racing and even poker. He currently reports to gaming companies in Illinois and Europe.
