Illinois Bets on Online Poker to Tackle Budget Woes

Key Takeaways:

• Illinois considers legalizing online poker and casino games to tackle budget shortfall
• Proposed legislation includes 25% tax rate and potential for interstate poker
• Mixed reactions from lawmakers and industry representatives

Illinois is taking steps towards legalizing online poker and casino games as a potential solution to its looming $3.2 billion budget deficit for fiscal year 2026. Representative Edgar Gonzalez Jr. introduced HB3080 in February, which has recently been referred to the House Rules Committee.

The proposed legislation sets a 25% tax rate for the online gaming industry and includes provisions for Illinois to join the Multi-State Internet Gaming Agreement. This move could significantly boost the state's online poker market by allowing shared player pools across state lines.

Governor J.B. Pritzker has expressed support for the initiative, calling it 'worthy of consideration' in light of the state's financial challenges. Senator Cristina Castro, who has previously introduced similar bills, believes this approach could be more palatable to constituents than other revenue-generating measures.

However, the proposal has faced opposition from some quarters. Ivan Fernandez, executive director of the Illinois Gaming Machine Operators Association, voiced concerns about the potential negative impacts on vulnerable individuals and minors.

Proponents of the bill argue that many Illinois residents are already gambling on unregulated sites, and providing a legal, regulated option would be beneficial. James Hartmann, a FanDuel lobbyist, emphasized the difficulty in shutting down unregulated sites and the advantages of a regulated marketplace.

If Illinois joins the Multi-State Internet Gaming Agreement, it could significantly expand the player pool for interstate online poker. With a population of 12.7 million, Illinois would join other populous states like Michigan and New Jersey, potentially creating a combined player base of over 42 million across all member states.

Currently, major operators like WSOP.com, PokerStars, and BetMGM offer shared player pools in existing member states. The potential addition of Illinois to this network could further boost the online poker ecosystem in the United States.