Efforts to legalize online gambling in Illinois are encountering resistance as the state's spring legislative session nears its May 31 scheduled adjournment. A proposal to allow internet-based casino gaming has not progressed in recent weeks, even as hopes remain that movement toward legalization might occur.
Key Takeaways
- Illinois lawmakers face pressure as proposals to legalize online casinos stall before May 31 adjournment
- Local businesses warn online casinos could cannibalize revenue from video gaming terminal operations statewide
- Legislators like Rep. Bob Rita say last-minute developments are possible despite the limited time remaining
Opponents of the expansion proposal warned that legalizing online casinos would severely cannibalize existing revenue streams that currently profit local businesses such as taverns, restaurants, and local communities.
Speaking for the Illinois State Bowling Proprietors Association, Keith Hamilton pointed out to The Center Square that video gaming terminal (VGT) revenues at local establishments are put directly back into the community.
The Prairie State has already acted to broaden its gambling law to encompass Illinois sports betting, which subsequently evolved into mobile wagering. Hamilton cautioned that allowing more digital gambling options, such as internet casinos, would risk diverting consumer spending away from local businesses to websites that may not reflect the same value back into the community.
He was joined in those feelings by Bill Brennan, proprietor of Oak Lawn's Arena Lanes. He told the news outlet that local businesses have succeeded in lobbying efforts to prevent the online casino bill from advancing in past years. However, he is worried that ongoing budget pressures could change that outcome.
Brennan pointed to the state's continued search for new revenue sources, warning that it might be short-sighted if it takes away from traditional revenue sources based on public and private investment.
Lawmakers get behind measure
The online casino issue is not without political support. Rep. Bob Rita, a driving force behind previous gambling expansions in Illinois, indicated that while time is short during the session, no proposal could be ruled out entirely. Parliamentary wrangling in the remaining days could still hold surprises with only days to go.
Rita also noted that any move to legalize internet casinos must be done with a picture of its total economic effect, not only its potential to draw money into the state. He said legislators are being lobbied by both sides, which can intensify as the session deadline nears.
The most at stake are those businesses that depend on foot traffic and person-to-person interaction. Local businesses that host VGTs are often community gathering points, especially in small towns and the suburbs.
Stakeholders are concerned that the convenience of online casinos would reduce customer visits. They contend that this would translate to lower revenues and, as a result, fewer jobs and less capital investment in the community.
Yet, proponents of legalizing internet casinos argue that iGaming would offer a new, regulated revenue stream to help Illinois offset its budget struggles.
However, the debate is not without its contentious points, particularly as they pertain to matters of economic displacement and the degree to which online gambling would replace, rather than augment, other forms of wagering.
