Illinois legislator passes bill to legalize online casino in the state

Illinois legislator passes bill to legalize online casino in the state

The legalization of online casino operations in Illinois is getting momentum anew after State Representative Bob Rita passed House Bill No.3142 or the Internet Gaming Act.

The new bill seeks to legalize iGaming activities in Illinois with the state granting interactive gambling licenses to casinos and racetracks for a $500,000 fee. Rita also proposes a 12 percent iGaming taxation on profits, which is similar to the tax cut imposed on sports betting winnings. Moreover, Illinois would follow the policy in Pennsylvania where venues can claim up to three skins,

PointsBet USA Launches First Off-Track Sportsbook in Illinois

Online casino opens a new revenue lifeline for Illinois

Illinois congress were previously lukewarm on the idea of letting iGaming businesses operate within the state. However, Illinois legislators may have a change of heart after several states recorded increased tax revenues following the legalization of online casinos and sports betting in their respective territories.

For a revenue struggling to bounce back from losses during the COVID-19 pandemic, iGaming is looking like another lucrative source of revenue. For example, Illinois registered $12.3 million in tax revenue in December alone, but the iGaming has proven to be more lucrative industry in some states.

No Guarantee for iGaming in Illinois

Still, nothing is set in stone with regards to online sports betting and casino getting the green light from the Illinois congress. Moreover, there are groups – consists of state bodies and businesses – that sees iGaming as potentially ruinous, both from an economic and societal standpoint.

The new Fair Tax poses a threat to the wealthiest state residents, while Gov. J.B. Pritzker is lobbying to cut $700 million of funding to state agencies,a scenario that would leave public sector underfunded.

Should HB3142 pass all the legislation hurdles and get the signature of approval from Gov. Pritzker, whose stance on the matter remain unclear, the Illinois Gaming Control Board would have 90 days to administer the Internet Gaming Act.

Other details specified in the bill are the privilege given to regulator to use the already existing legislation for sports betting, making the necessary amendments to better match state needs and other precautions. Aside from the three gaming skins allowed per venue,the state would allow each Internet gaming license to contact up to three Internet management service providers.

HB3142 follows common regulatory wisdom in outlining the gambling age as 21 and limiting remote gambling to only residents or individuals within the state borders. It also makes a particular point of placing the servers in a highly-secured location that is off-limits for the general public

License holders would have to pay $250,000 for renewals and a $100,000 application fee to the board. Management service provider license applicants would need to shell out $50,000 in application fees per license, which expires after four years.

As to the license to operate iGaming, the validity of the license will coincide with the “requester’s owners license or organization license.”

Illinois’ casinos resumed operation on January 15.

Avatar

About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.