One step forward, one step back
HB 3142 would allow the Prairie State’s casinos and racetracks to offer internet gaming
Last week, Illinois saw the introduction of a new online casino bill, HB 3142. State Rep. Bob Rita proposed the legislation on Thursday. If passed, HB 3142 would allow the Prairie State’s casinos and racetracks to offer internet gaming. The bill would permit three online casino skins per licensee, also paving the way for an online poker market.
Meanwhile, online casino backers in the neighboring state of Indiana faced a setback last week after a pair of bills failed to pass through the committee stage in time. The bills would have legalized internet gaming in the Hoosier State’s racinos and casinos. Lawmakers will now have to wait until next year to reintroduce SB 417 and HB 1406.
Rita sets Illinois on the path
Rep. Bob Rita was one of the main proponents for Illinois sports betting before its legalization in 2019. This has already generated great success, with the state seeing more than $125m in operator revenue and $19m in taxes since the market went live in March 2020. Now, he has his sights firmly set on online casino wagering.
the online gaming licensing fee would be $500,000, renewed for a fee of $250,000
Rita’s HB 1342 proposes a tax rate of 12% on gross gaming revenue, lower than the 15% tax currently in place for sports betting. In addition, the online gaming licensing fee would be $500,000, renewed for a fee of $250,000. The legislation would require online casino customers to register in-person for the first six months.
As part of the bill, Rita also opened the door for a possible multi-state poker market. He included a section on accepting out-of-state wagers – something necessary for multi-state liquidity sharing for online poker operators. However, he asked the Illinois Gaming Board to determine whether it could permit this under state law.
Hoosiers back to square one
In January, Indiana Senator Jon Ford introduced a new bill that would allow the state’s 14 casinos and racinos to apply for online casino licenses. State Rep. Alan Morisson proposed a companion house bill later that month, sharing Ford’s intention.
After failing to pass the committee stage last week, both SB 417 and HB 1406 will not be taken up again until 2022. This is bad news for state coffers, according to the senator. Ford projected that a legal online casino market could generate between $65m to $80m in annual tax revenue. He also argued the additional funds could help Indiana’s land-based casino industry recover from the impact of the pandemic.
Ford based his projections partially on the success of online sports betting in Indiana. In just December last year, Hoosier bettors wagered more than $313m on sports bets. It was the sixth straight month in which handle grew, with online apps accounting for 84% of the total.