Illinois online gambling market could generate revenue of $1.7 billion within first five years, if the state’s Legislature approves an iGaming bill introduced earlier this year.
A report compiled by Las Vegas-based gambling industry strategist Chris Grove and commissioned by the PlayUSA and Online Poker Report websites shows that a legalized online casino and poker industry could bring significant and much-needed tax revenue to Illinois’ coffers. The state has been locked in a more than a two-year long budget impasse and lawmakers are in a desperate search for additional revenue sources to mend the financial issues that had befallen Illinois.
It was in late May when the state emerged as a likely candidate to legalize online gambling this year amid continued iGaming efforts in different other US states. The Illinois Senate voted in favor of H 479 on May 31, putting a formal beginning to the state’s online gambling and daily fantasy sports legalization push.
Here it is important to note that the piece of legislation originally included only daily fantasy sports provisions, but its scope was later on extended to encompass online casino services as well. The amended bill now needs to be approved by the House in its current form.
Illinois’ Legislature officially adjourned on May 31. However, state legislators failed to find a solution to the troublesome budget riddle, so they decided to enter a continuous legislative session, which is set to last for as long as necessary. This is why, it is believed that H 479 still has considerably reasonable chances to take effect as a law by the end of the year.
According to Mr. Grove’s report, Illinois’s legalized iGaming market could generate around $280 million in revenue during its first year. The majority of revenue (around $233 million) would come from online casino games, but online poker is also believed to become a significant revenue contributor.
In Mr. Grove’s view, the newly opened market could attract up to 13 licensees during the first year. Under H 479, operators interested to enter Illinois’ iGaming market will have to pay a $10-million tax prepayment in order to be able to obtain a license.
As a result, the amount of $138.3 million could be generated for the state coffers in year one. The tax prepayment will affect tax revenue for the second year as there will be no funds contributed to the state, but the loss in that year is expected to be offset in the coming years. Tax revenue is forecast to increase to $11.3 million in year three, to $57.9 million in year four, and to $59.1 million in year five.
DFS contests are projected to generate around $175 million in revenue in the first five years and around $19 million in taxes to the state.
