Illinois on-line gambling marketplace could produce income of $1.7 billion within initial 5 years, when the state’s Legislature approves an iGaming bill introduced earlier this year.
A report compiled by Las Vegas-based gambling business strategist Chris Grove and commissioned by the PlayUSA and On-line Poker Report websites shows that a legalized on-line casino and poker business could bring substantial and much-needed tax revenue to Illinois’ coffers. The state has been locked in a greater than a two-year long budget impasse and lawmakers are inside a desperate search for additional revenue sources to mend the financial issues that had befallen Illinois.
It was in late May when the state emerged as a likely candidate to legalize online gambling this year amid continued iGaming efforts in different other US states. The Illinois Senate voted in favor of H 479 on Might 31, placing a formal beginning towards the state’s on-line gambling and every day fantasy sports legalization push.
Here it’s important to note that the piece of legislation originally integrated only daily fantasy sports provisions, but its scope was later on extended to encompass on-line casino solutions also. The amended bill now needs to become approved by the Home in its current type.
Illinois’ Legislature officially adjourned on Might 31. However, state legislators failed to locate a solution towards the troublesome budget riddle, so they decided to enter a continuous legislative session, that is set to final for so long as essential. That is why, it’s believed that H 479 still has considerably affordable chances to take impact as a law by the end of the year.
Based on Mr. Grove’s report, Illinois’s legalized iGaming marketplace could generate about $280 million in revenue during its initial year. The majority of revenue (around $233 million) would come from online casino games, but online poker is also believed to become a substantial income contributor.
In Mr. Grove’s view, the newly opened marketplace could attract as much as 13 licensees throughout the first year. Under H 479, operators interested to enter Illinois’ iGaming market will have to pay a $10-million tax prepayment in order to have the ability to obtain a license.
Consequently, the amount of $138.3 million might be generated for the state coffers in year 1. The tax prepayment will impact tax income for the second year as there will be no funds contributed towards the state, but the loss in that year is expected to be offset in the coming years. Tax revenue is forecast to increase to $11.three million in year 3, to $57.9 million in year 4, and to $59.1 million in year five.
DFS contests are projected to generate around $175 million in income within the first five years and about $19 million in taxes towards the state.
