Illinois Online Gambling Bill Remains in Limbo

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Wednesday, February 27th, 2013 | Written by Shane Larson

After a much-ballyhooed introduction, a bill that would introduce regulated online gambling in the state of Illinois appears to have fallen into something of a political limbo.

The move to regulate online gambling was introduced in early March as part of a much larger bill that also included new land-based casinos and additional gambling options at Illinois racetracks. A Senate vote on the bill scheduled for the day after its introduction never panned out, and there has been no movement since.

Illinois Governor Pat Quinn sounded a pessimistic note on the possibility of full-service online gambling in the Midwestern state, calling it “problematic.” And a handful of Illinois legislators have also raised concerns about the inclusion of online gambling in a bill already proposing such a substantial expansion of bricks and mortar gambling.

But pressure may be building on Illinois to pass regulated online gambling despite the apparent opposition. Caesars, a major proponent of regulated online gambling, has a substantial presence in the state. So does WMS, a leading manufacturer of games and gaming equipment, who has already struck a number of online gambling partnerships. And Illinois already offers real-money online lottery sales, making the transition into a full range of online gambling a less dramatic one than it might be in a state starting from zero.

The battle for additional casinos in Illinois has been a long and bitter one, pitting a variety of powerful interests against each other. This long and complicated history only further obfuscates the chances for online poker and online gambling; for example, the online aspects of the bill could be little more than a negotiating ploy in the infinitely complex tangle of interests surrounding the larger issues – like a casino for Chicago or slots for Illinois racetracks.

Those wishing to secure a license to operate online gambling sites in Illinois would need to pay a hefty price – $20 million up front as a down payment against future tax payments. Licenses are only available to those who are currently licensed in some form of land-based gambling in Illinois. And simply filing an application to operate an online gambling site in Illinois will set you back a minimum of $250k.

With Nevada, New Jersey and Delaware currently standing as the only three states that have passed significant online gambling regulation, Illinois – with a population of nearly 13 million – would immediately be a substantial force in regulated online gambling, especially in games like poker that require large player bases to succeed. All three states seem likely to have already launched real-money gambling online in some form by the time Illinois joins the group of states with regulated online gambling (assuming they join at all).

Illinois has flirted with the regulation of online gambling in the past, but the current bill easily represents the most serious attempt by state lawmakers to bring real-money Internet gaming to Illinois residents (or visitors within the state’s borders). But what remains to be seen is if the attempt is serious enough to survive the legislative process