Illinois lawmakers are considering a proposal to legalize internet gambling, or iGaming, in a move that could generate up to $1 billion in annual tax revenue. The debate, however, is drawing sharp opposition from casinos, video gambling terminal (VGT) operators, and labor groups, who warn the measure could undermine existing gaming businesses and lead to job losses.
State Rep. Edgar Gonzalez, a Democrat from Chicago, argued that legalizing iGaming would provide a financial safety net for Illinois, particularly in times of economic downturn. “Illinois is gambling with its financial future by delaying the adoption of iGaming,” Gonzalez said during a House Gaming Committee hearing.
Supporters contend that illegal online gambling is already widespread in the state, with offshore websites operating without regulation or taxation. James Hartmann, a lobbyist for sports betting giant FanDuel, emphasized the lack of oversight on these platforms. “Right now, you can take out your phone and in five minutes, be gambling real money slot machines from the app store, unregulated and untaxed,” he said.
Advocates say iGaming could become a major source of tax revenue for Illinois, citing a report by the consultancy firm Eilers & Krejcik that estimates state earnings could reach $775 million within five years and potentially surpass $1 billion at higher tax rates. The Sports Betting Alliance, which represents major sportsbooks, is lobbying for iGaming expansion not only in Illinois but also in Maryland.
Trevor Hayes, an executive with Caesars Sportsbook, said online gambling could drive more traffic to traditional casinos by attracting new demographics. “iGaming is actually a marketing tool to find new customers – younger customers,” he said.
Despite the financial incentives, opponents argue that iGaming would cannibalize existing gaming revenue, particularly for casinos and VGT operators. Jay Keller, a lobbyist for Penn Entertainment, said the company has invested $600 million in Illinois casinos under the assumption that the state’s gaming landscape would remain stable. “The economic impact of iGaming is uncertain, but the potential negative consequences are clear,” he told lawmakers.
A study commissioned by the National Association Against iGaming estimates that Illinois could lose $252.5 million in casino tax revenue and 4,733 jobs if iGaming is introduced. Marc Poulos, executive director of the International Union of Operating Engineers Local 150, expressed concerns about job losses and potential reductions in state infrastructure funding. “Every study we have looked at shows that iGaming would cannibalize existing gaming positions, mainly video gaming terminals,” he said.
Critics also warn of increased gambling addiction risks with 24/7 access to online casinos. Ivan Fernandez, director of the Illinois Gaming Machine Operators Association, cautioned that iGaming could lead to excessive and isolated gambling.
The Illinois Gaming Board has voiced opposition to the bill, citing its existing regulatory workload and concerns over unregulated sweepstakes machines that operate in a legal gray area.
The House Gaming Committee did not take a vote on the proposal, as the hearing was informational. However, Committee Chair Dan Didech, a Democrat from Buffalo Grove, acknowledged the challenges ahead, calling opponents’ concerns “well-founded.”
Original article: https://www.yogonet.com/international/news/2025/03/18/98497-illinois-lawmakers-weigh-igaming-legalization-amid-landbased-industry-pushback
