After a year of growth, the Illinois gambling industry is looking towards 2025 with anticipation. Play Illinois offers four predictions for the future of sportsbooks and casinos in the state.
Illinois online casinos will launch
Video gaming terminals reign supreme in Illinois, with around 44,000 units spread across 8,200 locations. The revenue generated by VGTs surpasses that of casinos in the state, and the numerous small businesses relying on VGT income are prepared to defend their stake against online casinos.
However, Illinois, similar to many other states, is desperately in need of more revenue.
Illinois ranks fifth in the nation for debt, with a total of approximately $65 billion according to USGovernmentSpending.com. However, the state’s debt as a percentage of gross state product is relatively low at 6.6%.
However, The Pew Charitable Trusts found that from 2005 to 2019, Illinois was one of only eight states where spending surpassed income. Additionally, Pew stated that Illinois could only sustain operations for slightly more than 27 days with its current funds.
Illinois has one of the highest state and local tax burdens in the US, with the seventh highest tax burden at approximately 12.9%.
Illinois ranks second in the country for unfunded pension debt, with a share of state personal income at 19.2%. This is why revenue from the upcoming Bally’s Chicago casino will be directed towards the city’s police and fire pension funds.
All of this indicates that Illinois requires a significant amount of revenue without increasing taxes. Seven online sportsbooks are currently in operation in Illinois, with six of them offering both online casinos and sportsbooks, making them available in the seven North American jurisdictions that offer both options.
Illinois ranks as the second largest sports betting market in terms of revenue and the third largest in handle.
Adding online casinos could provide a simple and efficient method for generating substantial revenue for the state of Illinois, as long as a favorable agreement can be reached with the VGT industry.
Illinois casinos will post a record-breaking year
Illinois casinos faced challenges during pandemic closures, but in 2022 the industry made a strong comeback.
Total adjusted gross revenue for Illinois casinos from January to November, based on the most recent data from the Illinois Gaming Board, exceeded $1.234 billion. This is a slight increase from the $1.230 billion generated in 2019, the year before the pandemic. Despite a decrease in attendance from over 9.5 million visitors in 2019 to more than 8.3 million in 2022, revenue has still risen.
This suggests that if there are no closures this year, Play Illinois anticipates an increase in the number of gambling customers at Illinois casinos in 2025.
In addition, Illinois is expected to introduce five new casinos and one larger casino in 2025 in order to boost revenue even further.
- The upcoming opening of The Temporary at American Place Casino in Waukegan is imminent.
- Golden Nugget Danville is set to open its doors in March 2025.
- The temporary Bally’s Chicago casino is set to open at the Medinah Temple in June of 2025.
- The opening of Walker’s Bluff Casino Resort in Williamson County is planned for 2025.
- The permanent Hard Rock Rockford casino is set to open in late 2025, following the opening of the temporary casino, Hard Rock: Opening Act, in 2021.
- The Wind Creek Chicago Southland Casino, located on the border of Homewood and East Hazel Crest, IL, is set to open in late 2025 or early 2025.
Illinois sportsbooks will regularly post billion-dollar handle months
In October, Illinois reached a milestone by exceeding $1 billion in sports betting handle for the first time. These figures are the latest data released by the IGB, which typically operates on a two-month delay when reporting sports betting numbers.
According to Play Illinois, billion-dollar handle months are expected to become a common occurrence in Illinois, at least until the summer.
NFL betting drove the highest handle in Illinois during September and October, and this trend is expected to continue and possibly increase in the months of December, January, and February. The Super Bowl remains the largest single sports betting event of the year, with Illinois sports bettors wagering $60.5 million on the 2022 Super Bowl last year.
Additionally, contributing to the driving force was the fact that December, similar to November, saw increased betting activity on the World Cup.
Furthermore, during the fall and winter months, there are ample betting opportunities in basketball, which is the second biggest wagering sport. In a Blackhawks-crazy state like Illinois, hockey betting also becomes popular during these months. As March Madness approaches in the spring, the potential for billions in handle in Illinois is significant, with this trend likely to continue until at least the summer of 2025.
At least five more Illinois sportsbooks will launch
Play Illinois made predictions in November about the upcoming Illinois sportsbooks.
Despite the high cost of entry, we anticipate there could be at least five new sportsbooks in Illinois by the end of the year, including the two awaiting approval at the United Center and Wrigley Field.
Circa is on its way, closely linked to the upcoming temporary Waukegan casino set to debut in January.
Based on our analysis in November, we anticipate that Bally Bet and bet365 will probably be launched in the near future.
There are a minimum of 14 available opportunities for an Illinois online sportsbook to join the market, with the potential for even more openings.
- Six connected through a tether with a licensed retail casino.
- Five new casino applicants are connected via a tether.
- Three licenses for online-only sportsbooks.
- It is possible that up to four are linked to professional sports facilities.
The cost of entry is a significant concern, with the minimum price for a sportsbook license set at $5 million. Additionally, entering the market through a partnership with an existing retail casino license holder required a fee of 5% of adjusted gross receipts, or a percentage of handle for horse racing tracks, resulting in prices ranging from approximately $2.3 million to $10 million.
In order to open a new casino or track, a minimum investment of $5 million is required, with additional costs based on a percentage. Operating a sportsbook at a professional sports facility requires a $10 million license fee.
Three online-only sportsbook licenses are available without the need for a connection to a physical casino, but they come with a hefty price tag of $20 million per license.
