The 2023 Illinois Legislative Session has come and gone. Once again, lawmakers were unable to pass legislation that would legalize online casinos in the Prairie State. While this may be disappointing news for some, it does give proponents more time to develop arguments for why bringing online casinos to Illinois would be a positive move. However, it also gives opponents more time to develop counter-arguments.
The legalization of online casinos is no longer an issue that nearby Michigan is grappling with. The state right across Lake Michigan made online casinos legal in January 2021. There are currently 15 live casino sites in the state, with more on the way. There are pros and cons of online casinos in Michigan that lawmakers in the Prairie State can keep an eye on as the Illinois casino discussion likely continues in the next Legislative Session.
Expert: Illinois via the internet casinos may bring in much needed revenue
By the end of the day, the question everyone really wants answered is: Are online casinos in Illinois worth it? If we use Michigan as an example, the answer to this question is “yes.”
The Michigan casino market is one of the most successful and profitable in the country. Since its launch in January 2021, Michigan’s online casino revenue, including the state tax revenue collected, is approaching $1 billion. This money could be extremely beneficial for various Illinois improvement projects.
Furthermore, the amount of revenue online casinos are generating is growing in Michigan. The state’s online casinos are on track to generate a record amount of tax revenue in 2023. According to a projection by PlayMichigan, “the 15 online casinos in Michigan are expected to collectively generate nearly $368 million in tax revenue this year alone. That would be a 27% increase from last year’s number and well ahead of what online sports betting and casinos combined paid in 2022.”
Nationally, the tax and fee rates for internet gaming range from about 20% to 28%, depending on the amount of money a casino generates from online gambling. Therefore, in the end, it will be up to state lawmakers and the Illinois Gaming Board to figure out a way to ensure that residents are getting the most value for their money.
The state of illinois losing approximately $660 zillion in total revenue right from residents playing illegally
Possibly the biggest question regarding the legalization of online casinos in Illinois is that residents of the Prairie State are already gambling significant amounts of money on illegal and unregulated sites.
A PlayIllinois analysis, based on data from the American Gaming Association, suggests that Illinoisans could be gambling as much as $1.65 billion annually through illegal online casinos. This translates to a loss of $660 million in revenue.
First and foremost, this is a substantial amount of money that is leaving the state where it could instead be put to good use in improving the lives of people in Illinois.
Secondly, gambling on illegal sites leaves Illinoisans vulnerable to scams in an unregulated system without consumer protections.
Failing to legalize online casinos in Illinois will not put an end to gambling in the state. It will simply continue to occur illegally.
This was one of the reasons why Michigan chose to legalize online casinos.
Que contiene: Michigan via the internet casinos introduced at the same time for the reason that online wagering
On the surface, linking the launch of online casinos to sportsbooks may seem like a positive development. However, there could be additional complications due to the current state of the Illinois online gambling market.
Michigan successfully launched both online casinos and online sports betting, allowing operators like DraftKings and BetMGM to offer both services concurrently. While this transition may not have posed a problem for the operators, it could present challenges for state regulators. Advocates cannot simply look to Michigan as an example of seamlessly integrating online casinos into an existing online gambling market, as they did not have to navigate that process.
Another factor that contributed to the success of Michigan’s approach is the involvement of local Native American tribes, which is not the case in Illinois where things operate differently.
Michigan’ s casinos launch was obviously a long effort
According to PlayMichigan, the Michigan State Congress legalized internet gambling, sports betting, fantasy sports, and online poker in December 2019. However, operators did not launch legal gambling sites in the state until over a year later.
Michigan was one of the first states to establish a system for online gaming and sports betting that includes both commercial and tribal casinos. Under state law, only licensed casinos in Michigan, including the 24 tribal casinos and three Detroit casinos, are allowed to offer online gaming and betting options.
Currently, Illinois has only two casinos with ties to Native American tribes. The Seminole Indian Tribe of Florida operates the Hard Rock Casino in Rockford, with a temporary location already operational while the main venue is still under construction. Additionally, the Wind Creek Chicago Southland in the Homewood/East Hazel Crest area, expected to open in 2024, is owned by the Poarch Band of Creek Indians in Alabama. These two casinos operate as commercial casinos under Illinois laws rather than as Indian gaming casinos under federal regulation.
This situation can be seen as both a pro and a con, depending on one’s perspective. On one hand, Michigan has developed a working relationship with the tribes to introduce online casinos in the state. However, on the other hand, sometimes these working relationships encounter roadblocks that hinder progress.
Different vital takeaways Illinois can easily learn from The state of michigan
Online gambling is becoming increasingly popular across the country, and it’s possible that online casinos will become legal in Illinois in the near future. Michigan’s process of legalizing online casinos did not happen quickly, so what can Illinois learn from Michigan’s example?
One thing is that Michigan has a comprehensive set of rules and regulations for operators and players. Legal online casinos in Michigan clearly state on their applications and websites that they are regulated by the Michigan Gaming Control Board. They must also partner with one of the state’s casino operators. Additionally, customers must undergo geolocation verification to confirm that they are located in Michigan before they can place bets.
Illinois already has some of the necessary framework in the state’s legislation for online sports betting. While it’s true that none of the online casino bills made it through the Illinois Legislature, there are some positives to take away. Firstly, online casinos were discussed by lawmakers, which means that similar legislation could be introduced again next year. Secondly, supporters can conduct more research and demonstrate how well online casinos are functioning in other states. Michigan serves as a great example to use in that argument.
M. J. Caillou is a writer based in Illinois. Most recently, he has been covering media and sports for over 10 years, both online and broadcast. He was born and raised in Minneapolis, Minnesota and is an excellent alumnus affiliated with the University of Minnesota Express: Moorhead. Recently, he has dived right into tribal gambling facilities and online gambling news. He also defended the start of gambling in Arizona. M. J. has worked as a reporter and videographer in the media and has covered high school, college, and specialty sports throughout his career, including sports for the Arizona Capital, Phoenix, Minnesota Vikings, and North Dakota State University Express.
