Illinois iGaming Faces Potential Hindrance from VGT Supporters
Illinois Lawmakers Contemplate Expansion of Gambling Options with Online Casino Gaming
A potential shift in Illinois' sports betting regulations could be underway, as lawmakers contemplate the introduction of online casino gaming. This development pits tavern and restaurant owners who operate video game terminals against casino operators aiming to expand their offerings.
Legislation to legalize iGaming has been presented in both chambers of Illinois' General Assembly, following the enactment of a June 2019 capital bill that significantly expanded gaming options. The proposed legislation would extend online casino and sports betting options to casino and racino offerings.
The state, known for its presence as the leader in video game terminals, witnessed increased revenue generation since the Video Gaming Act was enacted in 2009. Approximately 39,000 machines statewide have bolstered tax revenue at both state and local levels.
During Wednesday's hearing of the Executive Committee chaired by Rep. Bob Rita, advocates for HB 3142, which would legalize iGaming, presented their case. Representative Daniel Didech argued that legalizing iGaming would counteract illegal wagering conducted through offshore operators, who pay no taxes, create no jobs, and pose a significant drain on the Illinois economy.
Michigan, one of the few states where iGaming is currently available, recently launched online gaming, generating $17.2 million in tax revenue in March alone. Illinois legislators have noticed this quick success and view iGaming as a potential revenue source.
Jeff Kaplan, vice president of Strategic Financial Planning for Penn National Gaming, also supports iGaming. He believes Illinois could generate more tax revenue than Michigan due to its larger population and higher median income. Kaplan also addressed concerns about potential cannibalization of brick-and-mortar casinos, stating online casino wagering as an amenity that complements, rather than replaces, conventional gambling establishments.
Opponents of iGaming have raised concerns about the potential impact on video game terminals. Rep. Tim Butler highlighted the importance of VGTs for numerous mini-casinos, particularly in smaller communities. He warned that the growth of iGaming could divert revenue away from VGTs.
Dan Klossner, the executive director of the Illinois Licensed Beverage Association, shared concerns regarding access by minors and problem gamblers. He emphasized that taverns and restaurants already handle such concerns in their controlled environments. Further, he mentioned the challenges faced by the service industry in attracting customers as more people get vaccinated and the potential for internet gaming to deter returning customers.
The proposed iGaming legislation does not directly address VGTs or explicitly include provisions for their regulation or enforcement. As of late May 2025, the bills have not advanced beyond committee discussions.
Sports betting, along with online casino options, could be extended to casino and racino offerings under the proposed legislation, given the ongoing discussions among Illinois lawmakers. By legalizing iGaming, Illinois aims to counteract tax-evading offshore operators and generate more tax revenue, according to Representative Daniel Didech. Jeff Kaplan, a vice president at Penn National Gaming, predicts that Illinois could potentially surpass Michigan's tax revenue generated from iGaming due to its larger population and higher median income.
