The executive committee will convene at 9:30 a.m. CST on Wednesday, April 28 to review Illinois gaming proposals.
Although we at Play Illinois do not have all the specifics, there are important subjects that may be up for discussion:
- Legislation for online casinos, in-person registration for sports betting, ban on collegiate betting in Illinois, and regulations for horse racing in Illinois.
There is no public agenda available, however a witness list has been provided.
- Jeff Kaplan from Penn National Gaming
- Lydia Garvey at Hollywood Casino Joliet
- Steve Brubaker representing the Illinois Harness Horsemen’s Association (IHHA) through Brubaker Public Relations, Inc.
- Tony Somone (IHHA)
- Tom Swoik, from the Illinois Casino Gaming Association
- David McCaffrey from the Illinois Thoroughbred Horsemen’s Association
- Jim Watkins, member of the Illinois Horsemen Benevolent & Protective Association
- Michael Alter (Chicago Sky)
All of them will give oral testimony and are identified as “proponents.”
Bob Rita, the committee chairperson, is known for co-sponsoring the Internet Gaming Act, a bill that aims to legalize online casinos in Illinois.
Here is an update on the current status of important gaming issues in Illinois and what insights can be gleaned from the witness list.
Online casino bills in Illinois House and Senate
There is currently online casino legislation in both the Illinois House of Representatives and Senate. Though the bills are not identical, they share similar details.
Both have a mandatory in-person registration for six months and a tax rate ranging from 12% to 15%. Additionally, they offer online poker and live dealer options for casino games.
Rita and State Rep. Jonathan Carroll collaborated to sponsor the House bill. Carroll, who is a committee member, will be present at the hearing as well.
Swoik, listed as a witness, expressed to Play Illinois in February his desire for lawmakers to recognize online casino gaming as a necessary step forward for the industry.
During the month of December, casinos were shut down but saw success in online sports betting. This presents a chance for both the state and casinos to make money through internet gaming. The timing seems perfect to pursue this opportunity now, as another potential closure of casinos could result in losses for everyone involved.
As seen in the neighboring state of Michigan and other areas, online casinos generate more revenue than sports betting. In March, Michigan collected $17.3 million in state and local taxes from online casinos.
Illinois sports betting has yet to generate over $8 million in tax revenue in any given month.
Speaking of sports betting, what issues could be discussed?
The requirement for in-person registration is a clear solution.
That being said, it is worth noting that the sole Illinois sports betting operator included on the witness list is Penn National Gaming, the company behind Barstool Sportsbook.
Barstool was the most recent online sportsbook to debut in Illinois, and it was arguably the most impacted by Illinois Governor JB Pritzker’s decision to reverse online registration. However, Penn also runs online casinos in various states such as West Virginia, Michigan, and Pennsylvania, indicating their potential interest in the legalization of online casinos.
Notably missing from the list of witnesses are representatives from Rush Street (Rivers), DraftKings, and FanDuel. It is expected that Rush Street would advocate for in-person registration, while DraftKings and FanDuel would likely support mobile registration.
At the same time, there is a House bill in Illinois that aims to lift the prohibition on betting on in-state collegiate sports. This would allow Illinois residents to wager on local teams such as Illinois, Northwestern, Loyola-Chicago, and others.
In February, State Rep. Michael Zalewski reintroduced a bill to lift the ban, but he is not scheduled to attend the hearing.
What about Illinois horse racing?
When you examine the witness list, you will notice that there are several individuals from the horse racing industry.
The IHHA has expressed concern for the future of Illinois horse racing in a recent update on its website.
Here’s an excerpt:
After Arlington Park (Churchill Downs) declined to confirm a racing season for next year, it became clear that Hawthorne could be the only racetrack remaining in 2022. Horsemen, both harness and thoroughbred, are anxious about their future, uncertain about where and when they will be able to race.
The update suggests that if Arlington does not host any races in 2022, they may consider holding horse races at either the Springfield State Fairgrounds or DuQuoin.
In 2021, several proposed amendments to the Illinois Horse Racing Act of 1975 have been put forward for discussion.
In conclusion, Wednesday has the potential to be a momentous day for the Illinois gaming industry, and there is much to be gained from the developments.
