Past And Present: Illinois Gambling Expansion

Past And Present: Illinois Gambling Expansion

What you need to know about sports betting, casino, VGTs and OTBs in Illinois

The gambling expansion bill signed by Gov. JB Pritzker in June 2019 in Illinois is still proving to be beneficial. This legislation allows for the legalization of sports betting in Illinois and the creation of six new retail casinos, with one to be located in Chicago.

Currently, there are 10 retail casinos in Illinois along with numerous video gaming terminals (VGTs) situated at truck stops, bars, and other locations.

This is the necessary information for legal gambling in Illinois.

Is gambling legal in Illinois?

Illinois law allows for a wide range of gambling activities, including retail and online sports betting, casino games, poker, racetrack betting, off-track betting, lottery, and charitable gambling. Governor Pritzker signed a gambling expansion bill in June 2019, which included the Sports Wagering Act.

  • Illinois legalizes sports betting.
  • Approval has been granted for six new casino licenses.
  • Including Chicago as one of the casino locations.
  • Expansion of VGTs.

The Sports Wagering Act did not authorize online casino games or online poker, but the potential for online casino gaming could be introduced to the state if the Internet Gaming Act, proposed on Feb. 19, 2021, is approved.

Where can I bet on sports in Illinois?

Visit retail locations of popular online sportsbooks like BetMGM, DraftKings, FanDuel, PointsBet, BetRivers, Barstool, or Caesars to complete your new sports betting account setup and place bets online.

Online Sportsbook Casino/OTB
PointsBet Hawthorne Race Course
BetRivers Rivers Casino
PointsBet Club Hawthorne Crestwood
PointsBet Player’s Pub & Grill
Caesars Grand Victoria Casino
Barstool Hollywood Aurora
FanDuel FanDuel Sportsbook & Horse Racing
DraftKings DraftKings at Casino Queen
BetMGM Par-A-Dice Casino

   

How much revenue does sports betting bring to Illinois?

In October 2021, Illinois is nearing a cumulative revenue of $560 billion. The state remains the third highest in the US in terms of total monthly wagers, as reported by the Illinois Gaming Board, with a total of $840.4 million wagered in October 2021.

Where can I play casino games in Illinois?

    There are several casinos located in different areas of Illinois, including Argosy Casino in Alton, Casino Queen in East St. Louis, DraftKings at Elgin’s Grand Victoria Casino, Harrah’s Casino in Joliet and Metropolis, Hollywood Casino in Aurora and Joliet, Quad Cities Bally’s Casino & Hotel, Par-A-Dice Casino in East Peoria, and Rivers Casino in Des Plaines.

Where can I bet on horses in Illinois?

  1. Collinsville’s FanDuel Sportsbook and Horse Racing venue
  2. Hawthorne Race Course, Stickney

Which Illinois regions will get a new casino?

The Sports Wagering Act allows for the development of six new casinos in designated locations. These areas include:

  • Chicago
  • Danville
  • Rockford
  • South Suburbs
  • Waukegan
  • Williamson County

Who are the winners of the Illinois casino licenses so far?

In December 2021, the Illinois Gaming Board (IGB) chose the winners of two new casino licenses: American Place Casino in Waukegan and Wind Creek Casino Homewood/East Hazel Crest in the south suburbs. The board also provisionally approved both applicants for a license.

Here are the applicants:

  • Applicant from Rockford, 815 Entertainment LLC (Hard Rock Casino Rockford):
  • Applicant hailing from Waukegan: CDI-RSG Waukegan LLC, also known as Rivers Waukegan Casino.
  • Applicant from Waukegan: Full House Resorts Inc.
  • The candidate applying from Waukegan for a position at Lakeside Casino LLC (North Point Casino)
  • Applicant residing in Matteson seeking employment with South Suburban Development LLC.
  • Applicant from Lynwood: Southland Ho-Chunk Entertainment LLC
  • Calumet City applicant applying for a position at Southland Live LLC (Southland Live Casino)
  • Applicant from Williamson County: Walker’s Bluff Casino Resort LLC
  • Applicant from Danville: Wilmorite Management Group
  • Applicant residing in Homewood/East Hazel Crest: Wind Creek IL LLC

Where will the Chicago casino be located?

As of now, we have not yet received a definitive answer, but we are informed about the specific locations under review by city and gaming authorities. In January 2020, Mayor Lori Lightfoot proposed five potential casino sites. These locations are:

  • Harborside
  • Michael Reese
  • Pershing and State
  • Roosevelt and Kostner
  • US Steel

Lightfoot argues that the selected locations, mostly situated on the south or west sides of the city, are not the only options available. Experts in the industry suggest that these areas may not be the most lucrative. They are pushing for a spot closer to or within the downtown core of the city.

On August 27, the city of Chicago issued a request for information (RFI) seeking creative ideas for its downtown casino project. Analysts believe that the location of the venue will play a crucial role in determining its profitability, as a Chicago casino has the potential to generate substantial revenue. A consultant appointed by the state in the summer of 2019 projected that a centrally located casino could bring in annual earnings of $1.2 billion, surpassing the current top-performing casino in Illinois, Rivers, by nearly threefold.

The potential size of a Chicago casino remains uncertain, contingent on its eventual location. Nevertheless, the establishment promises to create numerous job opportunities, draw in both tourists and residents seeking entertainment, and provide a significant source of tax revenue for both the state and Cook County.

How much Illinois tax revenue will new casinos create?

Lawmakers in Illinois project that once fully implemented, the state could generate between $1.2 billion and $1.8 billion in one-time revenues from new casino bids, translating to $200 million to $300 million per license. Additionally, annual revenues from slot machines and table games are estimated to reach nearly $190 million. It is worth noting that this projection does not factor in potential earnings from retail sports betting, which could further boost overall revenue.

What about VGTs in Illinois?

Illinois has experienced a surge in video gaming thanks to bill SB 690, which allows licensed locations to now have six video gaming terminals (VGTs) instead of the previous limit of five. The maximum wager per machine has increased from $2 to $4, and taxes on video gaming have risen from 30% to 33%. According to Capitol Fax, this change could potentially add approximately $40 million to the state’s annual tax revenue.

History of Illinois gaming

The first sports bet placed in Illinois was preceded by extensive debate and legal disputes. Even after the initial bet, discussions continued as stakeholders worked to determine the best approach for introducing sports gambling in the state. Here is a chronological account, beginning with the present day:

2021

September

Churchill Downs has selected the Chicago Bears as the buyer for Arlington International Racecourse, a decision that could have major implications for the future as the Bears are considering leaving Soldier Field.

The Bears, who were the subject of our conversation, kicked off their season with a loss to the Los Angeles Rams in a primetime game in September.

In September, Jumer’s Casino & Hotel was rebranded as ‘Bally’s Quad Cities Casino & Hotel,’ with the intention of introducing retail sports betting.

August

In August, Illinois maintained its third position behind New Jersey and Nevada in the US by recording a sports betting handle of $400.4 million.

In order to remain competitive with FanDuel in terms of revenue, DraftKings Sportsbook has introduced a Same Game Parlay feature.

During the Field of Dreams Game, the White Sox faced off against the Yankees while the Bulls made headlines in free agency with the signings of Lonzo Ball and DeMar DeRozan.

July

July was a slower month than usual in the Illinois sports betting industry, following the typical trend.

DraftKings switched to SB Tech in Illinois, giving sports bettors in the state another choice for betting lines. Previously, DraftKings had used Kambi, along with BetRivers and Barstool.

In May, we also acquired the revenue data for sports betting. Illinois once again exceeded the $500 million threshold, solidifying its rank as the second highest sports betting state in the country.

June

In June, Illinois fully reopened, giving casinos and sports stadiums the green light to operate at maximum capacity. This decision impacted all 10 state casinos, retail sportsbooks, as well as Wrigley Field and Guaranteed Rate Field.

The Illinois House of Representatives has passed a bill that would legalize collegiate betting in the state, but only for in-person betting. The bill must now be approved by the Senate before the governor can sign it into law.

To sum up, the Chicago Bears have submitted an offer to acquire Arlington International Racecourse and have partnered with BetRivers as their official sports betting provider.

May

In May, it was revealed that Illinois had set a new record for the highest sports betting handle in March. Residents of Illinois wagered an impressive $633.6 million during that month.

It was revealed that William Hill would undergo a transformation to become Caesars Sportsbook by William Hill in Illinois. Caesars announced plans to rebrand all of its US properties in alignment with the upcoming football season.

April

Illinois Governor JB Pritzker suddenly ended remote registration in the state, a move that had significant impacts on the industry.

We also found that Illinois residents wagered more than $200 million on March Madness.

Finally, the Bears made a bold move by trading up to acquire rookie QB Justin Fields. This decision has the potential to make the Bears a strong contender in 2021 and beyond.

March

Illinois, the Land of Lincoln, welcomed Barstool Sportsbook as its sixth online betting platform.

In addition, we received details on the revenue figures for January, revealing that Illinois set a new record with a handle of $581.6 million.

Illinois recently marked its one-year anniversary of sports betting and achieved a milestone in March by surpassing $2 billion in total handle.

February

In February, the Illinois Gaming Board (IGB) reported that the Prairie State broke a new record for sports betting in December, based on the most recent data released for Illinois.

It recorded a handle of $491.7 million, coming close to reaching the $500 million milestone.

It has also come to light that Churchill Downs plans to sell Arlington International Racecourse, suggesting that horse racing in Arlington Heights may soon come to an end.

January

In January, it was revealed that Illinois had achieved a new record high for sports betting totals in November.

In November, Illinois, also known as the Land of Lincoln, solidified its rank as the fourth largest sports betting state in the US by generating $449.2 million in bets.

Governor Pritzker reopened all 10 casinos in Illinois at the end of the month as COVID-19 numbers continued to decrease.

Although there have been no new sportsbook launches, Barstool plans to launch in time for March Madness.

2020

December

The closure of Illinois’ 10 casinos for the entire month meant that registration for mobile sports betting remained in effect.

The sports betting handle in the industry continued to increase, with the dominant narrative being the rise in December. October’s statistics for sports betting were recently released, showing that Illinois had a handle of $434.6 million.

Illinois is quickly catching up to Pennsylvania to claim the title of the third largest sports betting market in the US.

Although situated in Indiana, the Ameristar Casino East Chicago recently debuted a new Barstool retail sportsbook. Its convenient location just 30 minutes from downtown Chicago positions it as a prime retail option for residents of the Windy City.

November

In mid-November, Governor Pritzker decided to close all 10 state casinos as Illinois saw a rise in COVID-19 cases and temperatures dropped.

The video gaming terminals were closed in November because of overwhelming demand and stayed shut for the entire month and beyond.

In more positive news, the IGB has just released the sports betting revenue numbers for September. Illinois achieved a new milestone with a handle of $305.2 million, its highest ever recorded.

Illinois has climbed to the fourth position in the United States and is now recognized as the fastest-growing market in the country.

October

According to Illinois standards, October was a calm month, but we learned a lot about the state’s rapidly expanding gaming industry.

The revenue figures for August were announced by the Illinois Gaming Board (IGB) and were just as impressive as expected. In the month, the state saw a handle of $140 million, with BetRivers leading the market with an impressive 84% share.

Pritzker has once again extended the deadline for mobile registration until at least Nov. 14. It appears that this will continue to be the policy in the near to mid future, as COVID-19 cases continue to rise.

To summarize, Fairmount Park has been awarded a master sports wagering license by the IGB in partnership with FanDuel. Furthermore, the board has deemed Fairmount Park as ‘preliminarily suitable’ to proceed with its racino project.

September

September was an eventful month for sports betting in Illinois.

Because of the pandemic, mobile registration remained available for a full month. The Illinois Gaming Board (IGB) announced in mid-September that 230,000 online sportsbook accounts had been created in the state.

Governor JB Pritzker has extended mobile registration until at least October 17th.

Two new online sportsbooks were launched, bringing the total to five with the addition of PointsBet and William Hill. PointsBet secured a partnership with the Chicago Bears, becoming their inaugural sports betting partner. The operator also revealed plans to oversee three off-track betting facilities in the Chicago region.

DraftKings and the Chicago Cubs have joined forces on the north side of the city, with a collaboration that will see DraftKings operating a retail sportsbook at Wrigley Field down the line.

August

In August, DraftKings introduced its retail sportsbook in Illinois at the same time as Casino Queen’s transformation to DraftKings at Casino Queen.

Initially, DraftKings operated solely through retail locations. However, Governor Pritzker’s decision on August 21 to temporarily waive the requirement for in-person registration allowed DraftKings to launch its online sportsbook in Illinois. This marked the second mobile product to enter the market.

After teaming up with Par-A-Dice Casino, FanDuel debuted its online sportsbook on August 28. With the executive order scheduled to end on September 19, Governor Pritzker’s choice to extend it or not could have major implications for the industry.

Luckily, Illinois sportsbooks resumed offering golf events just in time for the BMW Championship at Olympia Fields. Jon Rahm emerged victorious over Dustin Johnson in one of the most thrilling PGA Tour events of the year.

July

Casinos reopened in early July after being shut down during the pandemic.

The next day, FanDuel announced a partnership with Par-A-Dice Casino in Illinois, following in the footsteps of DraftKings. FanDuel also secured a temporary operating permit as a service provider.

On July 27, Governor Pritzker unexpectedly reversed his executive order that had previously lifted the restriction on in-person registration for online sportsbook accounts.

Many events unfolded after the initial order was issued, as Pritzker unexpectedly revoked it. This unexpected turn of events caught operators off guard. At the same time, the MLB commenced its shortened season, while both the NBA and NHL resumed their seasons. As a result, the two active retail sportsbooks in the state were able to provide games for betting.

July came to a close with yet another controversial event.

BetRivers had to briefly stop accepting bets on golf, tennis, motorsports, Korean baseball, and select soccer leagues due to a miscommunication with the IGB. The matter was resolved, underscoring the continued unpredictability of Illinois’ emerging sports betting industry.

June

In early June, the Illinois sports betting story took yet another surprising twist.

Gov. Pritzker signed an executive order on June 8, temporarily waiving the requirement for in-person registration for online sportsbooks in response to the ongoing closure of casinos in Illinois. The Illinois Gaming Board stated that this order will remain in effect until a master sports wagering license is issued.

The IGB granted four-year sports betting licenses to all seven casinos on June 11, following their temporary operating permits. This decision also marked the beginning of a 630-day period in which regulators can begin reviewing competitive bids for online-only licenses.

One week later, on June 18th, BetRivers made history as the first online sportsbook to officially launch in Illinois. Thanks to an executive order from Gov. Pritzker, the site’s initial users had the convenience of registering for accounts online.

In June, DraftKings announced a partnership with Casino Queen, potentially accelerating the launch of DraftKings’ online sportsbook in Illinois.

May

In May, a temporary operating permit was granted to a seventh casino.

  • DraftKings at Casino Queen

Out of the seven casinos with permits, only the Rivers Casino and Argosy Casino Alton were granted provisional approval to accept sports bets.

April

In April, the sixth Illinois casino received a temporary operating permit.

  • Par-A-Dice Casino

In April, the Illinois Supreme Court issued a long-awaited judicial decision regarding the legal status of daily fantasy sports.

In 2015, Attorney General Lisa Madigan stated that Daily Fantasy Sports (DFS) were illegal, shaping sports betting laws and criticizing DraftKings and FanDuel as “bad actors.” Despite this stance, the DFS sites continued to operate in Illinois. As a result, the state imposed a “penalty box,” forcing both sites to wait 18 months before they could seek licenses to introduce their own online sportsbooks in the state.

However, the Illinois Supreme Court rejected Madigan’s opinion and ruled that DFS games contained enough skill to avoid violating state laws regarding gambling.

March

Since late 2019, the state had been aiming for March Madness as the official launch date for sports betting.

By early March, two additional casinos were issued temporary operating permits.

  • Hollywood Casino Aurora
  • Hollywood Casino Joliet

By the end of March, the racetracks in the state had applied for licenses, but none had been approved.

After receiving provisional approval to offer sports betting, Rivers Casino made history by becoming the first to accept sports bets at its BetRivers Sportsbook on March 9. Just three days later, Argosy Casino Alton followed suit and opened its own sportsbook.

Regrettably, that week brought an unexpected and significant shift for sportsbooks in the sports world.

The NBA suspended its season because of the coronavirus on the evening of Wednesday, March 11. The next day, Thursday, March 12, the NHL followed suit, MLB canceled spring training, and the NCAA scrapped all remaining winter and spring championships, including March Madness. By the end of the weekend, almost every major sport worldwide had come to a halt.

Despite the legality of sports betting in Illinois, there were no sporting events on which to place bets.

February

At the close of January, three casinos were at the forefront in submitting applications for sports betting licenses.

  • Argosy Casino Alton
  • Grand Victoria Casino Elgin
  • Rivers Casino

Both of them were granted temporary operating permits by the IGB in early February.

Initially, all 10 casinos had shown interest in obtaining sports betting licenses. However, when the time came to apply, some showed less enthusiasm. Their ongoing objections to the in-person registration requirement for online sportsbook accounts played a role in their decreased interest.

PointsBet showed their commitment to launching an online sportsbook in Illinois by teaming up with Hawthorne Race Course located near Chicago.

January

In late January 2020, the IGB approved the second phase of emergency rules, which included new criteria to evaluate the commercial reasonableness of fees for operators accessing official league data for in-play betting.

They also clarified which sports events license holders could accept bets on. Stadiums and arenas must obtain permission from the teams playing in their venues to apply for a license. Furthermore, bets made in Cook County will be charged an additional 2% county tax.

2019

July-December

Following that, the Illinois Gaming Board needed to create regulations for implementing the Sports Wagering Act. The dissatisfaction with the law prompted the IGB to include a 30-day period for public feedback in their procedures, which concluded in late September.

Indiana and Iowa, neighboring states, were quick to legalize sports betting before Illinois in May. They were able to set regulations and open sportsbooks in time for the start of the 2019 NFL season. However, Illinois lagged behind and was not ready to enter the sports betting market for a while.

The IGB announced in November that sports betting license applications would be available the following month, after the first phase of its Emergency Sports Wagering Rules was implemented.

On December 19, regulators announced that the initial phase of the application process had commenced, with a follow-up phase regarding operational guidelines expected to be released in early 2020.

End of May-June (passage into law)

The casinos were pleased with the outcome, but DraftKings and FanDuel were not completely happy. Chicago Mayor Lori Lightfoot opposed the idea of allowing sports betting at stadiums near the new Chicago casino as part of the gaming package.

The Illinois Gaming Board, Boyd Gaming, and Penn National Gaming all opposed the bill. However, with sports betting included in a larger capital bill that was expected to pass, the legislation was in a strong position.

The House approved the capital bill with a vote of 82-27, followed by the Senate passing it two days later with a vote of 46-10.

Sports betting in Illinois was officially legalized on June 28, 2019 when Gov. Pritzker signed the bill into law.

End of May-June (Inclusion within capital improvements plan)

As the deadline approached, the fate of the bill was still up in the air as various caucuses and groups shared their views. Senator Rita also led several more subcommittee hearings.

Rep. Zalewski resigned after it was revealed that he had been working as a lawyer for multiple gambling companies, raising concerns about potential conflicts of interest.

The sports betting legislation, included in the larger gaming package, was ultimately included in Governor Pritzker’s $41 billion capital improvements plan. DraftKings and FanDuel reached a deal that allowed them to be involved in sports betting from the beginning, with their operations initially restricted to partnerships with existing casinos.

After an 18-month waiting period, three online-only licenses would be up for grabs at a cost of $20 million each. This delay, known as the “penalty box,” was imposed on DraftKings and FanDuel as online-only operators had to wait their turn.

Casinos were given the chance to obtain sports betting licenses for a four-year term for $10 million. Following the initial four years, the license could be extended yearly for $1 million. The revenue tax rate was established at 15%. The agreement mandated sportsbooks to utilize official league data for live betting, with no integrity fees attached.

Furthermore, it is important to note that individuals interested in using online sportsbooks must physically sign up for their accounts at the affiliated casino during the initial 18 months. Following this timeframe, the three online-only sportsbooks would be allowed to begin operating. This condition has been criticized by many advocates of online sports gambling, as the in-person registration mandate is expected to limit the revenue potential of online sportsbooks.

January-early May

Legislation to legalize sports betting was reintroduced in 2019, with the support of Gov. Pritzker and lawmakers.

Rep. Mike Zalewski presented the Sports Wagering Act as a preliminary bill, which was subject to multiple hearings and underwent various revisions and amendments before being combined with other legislative proposals. Ultimately, the bill was integrated into a broader casino expansion bill, with Rep. Bob Rita and Sen. Terry Link leading the effort as primary sponsors.

The new law would allow the 10 current casinos in the state, three racetracks, sports venues with a capacity of 17,000 or more, and lottery vendors to operate online and physical sportsbooks. It would also authorize the opening of new casinos in the state, including one in downtown Chicago.

With the end-of-May legislative session deadline approaching, it set the stage for an exciting ending.

The state’s casinos were disappointed by the combination of the sports betting and broader expansion bill.

Legislation introduced by Rep. Zalewski mandated a pause for DFS sites in Illinois following the enactment of a new law, igniting a debate over daily fantasy sports. Lobbyists representing DraftKings and FanDuel expressed their dissatisfaction with the decision, leading to representatives from both companies testifying at an Illinois hearing to defend their position.

2018

Sports betting was under consideration by Illinois lawmakers in 2018.

Rep. Lou Lang introduced the first sports betting bill in January, called the Legalization and Regulation of Sports Betting Act. By March, Sen. Napoleon Harris proposed the Sports Wagering Act, one of the remaining four bills on sports betting.

Harris’s proposed bill would permit retail and online sports betting, allocating 12.5% of the earnings to the state. Additionally, as a former NFL linebacker, Harris included a requirement for sportsbooks to pay an “integrity fee” to professional sports leagues upon request.

None of these bills made it to a voting stage, but the US Supreme Court’s decision in May 2018 to overturn the federal ban on sports betting in states sparked interest in Illinois. As a result, the Prairie State began seriously contemplating sports betting in the following year.