• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

VGT Backers Emerge As Potential Obstacle To iGaming In Illinois

Tavern and restaurant owners could face off against casinos looking to expand customer base

Chris Altruda by Chris Altruda
April 29, 2021
in Regulation
Illinois iGaming VGTs

Shutterstock

Share on FacebookShare on Twitter

It is not exactly like the Rise of the Machines from the Terminator film franchise, but an interesting battle may be taking shape in Illinois involving tavern and restaurant owners who operate video game terminals and casinos that desire to expand by offering iGaming.

Legislation has been filed in both chambers of Illinois’ General Assembly to add iGaming to casino and racino offerings. This comes on the heels of a June 2019 capital bill that greatly expanded gaming options — including licenses for six yet-to-be-built casinos and three yet-to-be-built racinos, plus legal sports betting in the Prairie State.

Illinois, though, is also recognized as the nation’s leader when it comes video game terminals (VGTs), which already generate a significant amount of tax revenue at both the state and local levels. During Wednesday’s hearing of the General Assembly’s Executive Committee chaired by Rep. Bob Rita — who filed HB 3142 that would legalize iGaming — two separate panels presented their respective cases.

The case for iGaming in Illinois

There are only six states where iGaming is currently available, with Michigan the most recent to launch in January. The quick success in terms of generating tax revenue in the Wolverine State — the state received $17.2 million from operators in March alone — has been noticed by Illinois legislators. Rep. Daniel Didech presented iGaming as a way to counteract illegal wagering conducted by offshore operators who “pay no taxes, create no jobs and are a significant drain on the Illinois economy.”

He added the illegal websites “create a status quo that is quite dangerous for Illinois customers,” and legalizing iGaming would allow the state to regulate game integrity and “crowd out predatory companies” by making it safer for players and to better help problem gamblers. Didech also pointed out the estimated $100 million in annual tax revenue would support the “many priority initiatives of members of the General Assembly.”

Jeff Kaplan, vice president of Strategic Financial Planning for Penn National Gaming, also voiced support for iGaming. He projected Illinois could receive more tax revenue than Michigan given the state’s larger population and higher median income.

Kaplan also addressed concerns over the potential cannibalization of brick-and-mortar casinos that comes with the discussions of introducing iGaming. He presented online casino wagering as an amenity that adds to his company’s bottom line.

“Prior to the pandemic, we performed an analysis on our customers to determine if there was any cannibalization to our brick-and-mortar revenue and what we found was iGaming was almost entirely complementary to our brick-and-mortar play,” said Kaplan, whose company operates three of the state’s 10 land-based casinos — Hollywood Aurora, Hollywood Joliet, and Argosy Alton.

“In addition, we attracted a different type of customer online as our online database averages 10 years younger than our brick-and-mortar players,” he said. “Due to these factors, we believe iGaming will grow the gaming marketplace and allow us to connect to a new type of player that we may not have attracted to our properties previously.”

Kaplan added those players are getting fed “back to the casino” because those players are in their system’s database and earning rewards points for their play that can be redeemed for food and other services at those establishments.

Butler, VGT stakeholders provide pushback

Though not as attention-grabbing to the public as casino gaming and sports betting, VGTs have been a significant provider of gaming tax revenue in Illinois since the Video Gaming Act was signed in 2009. The nearly 39,000 machines statewide have taken on more importance since the 2019 bill also allowed bars, restaurants, and taverns to install a sixth VGT and enabled truck stops to increase their number of offerings.

In the year’s worth of reports compiled by the Illinois Gaming Board since the state began accepting sports wagers at casinos in March 2020, VGTs have generated nearly $455 million in tax revenue — of which nearly $388 million has gone to the state — from more than $1.3 billion in operator revenue. That figure includes the terminals being turned off for four months covering two separate COVID-19 related closures as well as the inability to offer in-person dining and venues still not operating at 100% capacity.

By comparison, casinos have generated more than $103 million in state taxes from $577.2 million in revenue, with sports betting raising an additional $31 million from $208.8 million in revenue in that same timeframe.

Rep. Tim Butler, whose district spans from just north of Springfield to Peoria, pointed out the lobbyists who back iGaming did not account for the growth in VGTs across the state in the past decade and how “mom and pop businesses that are not casinos depend on revenue from VGTs.” He added the current partnership that provides tax revenues to local communities is a “unique combination.”

In a separate panel that dealt exclusively with VGT issues, Dan Klossner, the executive director of the Illinois Licensed Beverage Association, expressed concern about iGaming regarding access by minors and problem gamblers. “We, in our locations where we control for a 21-and-over age patron, already handle those concerns,” he pointed out.

Klossner also touched on a key point for the service industry — the challenge of getting people to return to bars, restaurants, and taverns where VGTs are located as more of the public get vaccinated. Klossner cited “‘FOGO,’ the fear of going out,” and suggested that internet gaming would be a deterrent to helping those businesses get back to full strength.

Executive Director for Illinois Gaming Machine Operators Ivan Fernandez added the VGTs also help provide indirect sales tax for the state since people who play VGTs also often dine and drink at those establishments.

ShareTweetShare
Chris Altruda

Chris Altruda

Chris Altruda has been a sportswriter with ESPN, The Associated Press, and STATS over more than two decades. He recently expanded into covering sports betting and gambling around the Midwest. His Twitter handle is @AlTruda73 and can be reached via email at caltruda@bettercollective.com

Related Posts

PointsBet-Hawthorne Villa Park OTB
Horse Racing

PointsBet Opens Last Of Its OTB Sportsbooks In Illinois

January 24, 2023
Illinois October 2022 revenue report
Industry

Illinois Posts Its First $1 Billion Monthly Sports Wagering Handle

December 8, 2022
Load More

Top Stories

fanduel-retail-sportsbook-front

Requiem For The So-Called ‘Risk-Free Bet’

February 2, 2023
garnett mgm springfield

Sports Betting Launches In Massachusetts, Giving Three Retail Books A Head Start

January 31, 2023
fanatics-grand-opening

Fanatics Sportsbook At FedEx Field Offers Unique Retail Option In Maryland

January 23, 2023
Shutterstock

Missouri Legislators Lament Exodus Of Bettors To Neighboring States

January 27, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
February 2, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
February 3, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
October 20, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (MI/NJ/OH/PA/WV), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).
19+. Please play responsibly. Terms and conditions apply. 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News

loading

Please wait while you are redirected to the right page...

Please share your location to continue.

Check our help guide for more info.

share your location