As the Illinois legislative session came to a close last week, efforts to legalize online casinos in the state encountered another setback. Two significant proposals — House Bill 2239, presented by State Rep. Edgar Gonzalez Jr., and Senate Bill 1565, sponsored by State Sen. Cristina Castro — were unable to progress beyond the committee stage, effectively halting any movement on the issue until the next legislative session begins in January 2025.

Proposed iGaming Tax Revenue in Illinois Fails to Advance Amid Legislative Gridlock

Both bills aimed to establish a legal framework for online casinos in Illinois, proposing a 15% tax on the revenue generated by these operators. The sponsors of these bills emphasized the potential tax revenue as a crucial benefit, especially in light of the state’s ongoing budgetary needs.

Despite these arguments, the Subcommittee on Gaming, Wagering, and Racing in the Illinois State Senate and the Gaming Committee in the Illinois State House did not advance the proposals. The lack of consensus among lawmakers meant that neither bill reached the floor for debate or a vote before the session ended.

This legislative impasse is not new to Illinois. Gonzalez and Castro have previously introduced similar bills, only to see them repeatedly stalled in committee. The lawmakers’ consistent efforts reflect a broader debate on the role and regulation of iGaming within the state. Online casinos have been more contentious than sports betting, which is already legal in Illinois and over 30 other states. In contrast, only six states currently have legal iGaming markets.

Physical Casinos in Illinois Resist iGaming Integration, Citing Competitive Concerns

One major point of contention against iGaming has been the potential impact that internet gambling could have on brick-and-mortar establishments. Some states have demonstrated that iGaming can complement or even enhance traditional gambling operations without harming income flows. 

However, this is not what Illinois’ physical casinos believe. They are against internet gaming and want to know where they fit into any further expanded gaming market. They are seeking clarification about license permissions as well.

Findings from studies undertaken in Michigan indicate that the introduction of online betting has not impeded post-COVID-19 recovery of retail casino revenues. Nevertheless, caution prevails among Illinois’ physical gambling facilities which fear a different story might unfold should they find themselves operating alongside a new highly competitive virtual arena.

It may not be until January 2025 when Illinois legislators get another chance to reconsider their stance on internet gambling laws. It is expected that Gonzalez as well as Castro will need to reintroduce their bills. 

Consequently, debate over advantages and disadvantages of bringing iGaming to Illinois shall continue while the state itself remains an onlooker in an industry which keeps growing bigger day by day.

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A group of four individuals from Illinois is facing charges in connection with a sophisticated baccarat scam that reportedly swindled the Wind Creek Bethlehem casino out of a staggering $300,000. The alleged scheme, involving six individuals in total, unfolded in the early hours of March 13, culminating in the detention of the four accused parties.

Illinois Group Employed Strategic Card Placement and Cellphone Tracking

According to court documents, Zu Lin, Yuhan Hu, Liping Zhou, and Zhencan Chen, all residents of Illinois, were apprehended by authorities following the departure of two other members of their group, Fuxiang Liu, and alleged ringleader Qingyong Zhang, reported local media outlet Lehigh Valley Live. The incident occurred around 7 a.m. at the Wind Creek Gaming Office.

Police reports suggest that the scam commenced shortly before 4 a.m. as the six individuals congregated at a reserved baccarat table on the casino floor. Qingyong Zhang, the purported mastermind, employed various techniques, including strategic card positioning and covert cell phone use, to track the order of cards as the deck was shuffled.

Subsequently, Zhang and Hu temporarily left the gaming area, reconvening at Hu’s hotel room before returning to the table to resume play. At approximately 5:10 a.m., Zhang allegedly signaled for the group to escalate their betting activity, prompting a series of lucrative wins over the ensuing half-hour.

Following their successful stint at the baccarat table, the group dispersed, with Zhang and Liu exiting the premises while the remaining four members engaged in other games within the casino. During interrogation, Hu disclosed that Zhang had compensated him with $5,000 for his participation, with all proceeds from the operation reportedly funneled to Zhang himself.

The Four Members of the Gourp Face Felony Charges

Further investigation revealed prior involvement in similar illicit gambling activities by Hu and Zhou in Illinois and Missouri, respectively. Consequently, the four apprehended individuals are facing felony charges of participation in a corrupt organization. While Lin, Hu, and Chen managed to post bail set at $100,000, Zhou remains in custody at Northampton County Prison.

Notably, the accused individuals, aged between 28 and 51, all hail from Chicago, with Lin being the exception, originating from Mount Vernon, Illinois. Legal representatives for the defendants have yet to provide comment on the matter, leaving lingering questions surrounding the intricate web of deception orchestrated within the confines of the Wind Creek Bethlehem casino.

Baccarat is seemingly a coveted mark for scammers. Recently authorities in Pennsylvania have been actively searching for Jianchu Liu, a 47-year-old Chinese national suspected of involvement in a professional cheating ring targeting baccarat games at casinos across the United States, including Mohegan Pennsylvania. 

Liu’s alleged sophisticated cheating method involved recording card sequences with his cellphone, prompting casino surveillance to identify him. Despite a warrant for his arrest on fraud-related charges, Liu remains at large, and authorities are seeking public assistance in locating him. This incident adds to a series of recent baccarat-related cheating scandals, including accusations against a Mohegan Sun dealer in January.

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Bally’s Chicago will soon expand to a 24/7 operation, allowing it to capitalize on the growing demand for gambling in the USA. The property successfully received the approval needed to expand its operation by 4 more hours and will service clients all day long starting December 27.

Bally’s Chicago was previously limited to only operating for 20 hours a day. The Illinois Gaming Board greenlit the schedule expansion on December 6, effectively allowing Bally’s to tap into the growing visitation it experiences.

Bally’s will reflect its new nonstop work hours by also transitioning Wabash Café’s dining service to a 24/7 operation schedule.

Mark Wong, Bally’s Chicago’s vice president and general manager, commented on the matter, highlighting the importance of keeping the property’s doors open 24/7. He explained that this will allow the company to achieve its targets and reflect the success of other Bally’s properties across the US.

This is a progression toward attaining the goals we set out to achieve and gives us similar hours to other local casino properties.

Mark Wong, VP & GM, Bally’s Chicago

In addition to expanding its work hours, the property will now also offer discounted parking and shuttle discounts to its clients.

Bally’s Is Constructing a Huge Casino in the City

The 24/7 operation expansion sets Bally’s casino in Chicago up for further success. The move is in line with the company’s overall strategy and reflects other casino companies’ business philosophies.

Bally’s is currently operating a temporary property in Chicago as it awaits the construction of its permanent Rhode Island venue. The company was granted one of the state’s six new casino licenses last year, allowing it to develop a $1.74 billion property.

The permanent Bally’s Chicago is set to be located at the Freedom Center printing plant site. Bally’s hopes to get the casino running by the end of 2026.

However, Bally’s was recently investigated over its Chicago license as unsuccessful bidders triggered a federal inquiry. The development followed earlier controversies involving the company and concerns about the implications of Bally’s Chicago property and its potential effect on public health.

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The Illinois Gaming Board, the government body responsible for regulating gambling in the American state, has announced that three land-based casinos have received licenses to operate in Danville, Carterville and Chicago.

Moreover, at the meeting of the Illinois Gaming Board in the last week of October, the Argosy Casino Alton was granted an extension on its already existing license so it will continue to operate for another four years.

The casinos that received the three licenses are Golden Nugget Danville, Walker’s Bluff Casino Resort and Bally’s Chicago. The license applications were put to the vote of the Board, but before that each of the casino representatives was given the chance to present the highlights of their operations and the future plans.

Along with the license for Bally’s Chicago, the company that operates that casino also received approval to operate a temporary casino at Medinah Temple for a total of 36 months while its permanent venue is under construction in Chicago.

Marcus D. Fruchter, the Administrator of the Illinois Gaming Board, made a quick recap following the meeting and underlined that the Board has licensed five new casinos since November 2021, with the respective venues located in Rockford, Waukegan, Danville, Carterville and Chicago.

The Illinois Gaming Board Administrator described this period as one “of unprecedented growth and expansion” and reminded the public that the government body remains “steadfast in its commitment to ensuring the ethics, compliance, integrity, safety, and transparency of Illinois gaming.”

New Video Gaming Rule

Marcus D. Fruchter also announced that the Joint Committee on Administrative Rules has adopted Video Gaming Rule 1800.1750, which had previously been adopted by the Illinois Gaming Board in April 2023. The new rule requires all operators licensed in Illinois to post responsible gaming signage in all video gaming locations. Casinos and sportsbooks were already required to do this in Illinois.

The Illinois Gaming Board also announced that it has completed a study on undue economic concentration in the video gaming industry in the American state. The respective study was completed by Christiansen Capital Advisors and its findings will be used by the Board to refine and adapt its regulations in order to keep the gaming market in Illinois innovative and competitive.

“Complex and important issues surrounding undue economic concentration have been largely unresolved since passage of the Video Gaming Act in 2009, and this study is an important step for the IGB’s work in this space,” Marcus D. Fruchter explained.

Source: “Argosy Casino Receives Four-Year License: Illinois Gaming Board Approves Three Casino Licenses“. RiverBender. October 26, 2023.

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An Illinois gambling businessman is seeking leniency after he was convicted of fraud, bribery and lying to FBI agents. He faces up to 20 years in prison for his crimes.

The businessman, James T. Weiss, was convicted in June this year and is currently awaiting sentencing from US District Judge Steven Seeger. Seeking leniency for his crimes, Weiss hopes to get out of this with a 27-month sentence.

For reference, the businessman was found guilty of bribing state officials to pass legislations that favored his business. Weiss’ company, Collage, manufactures sweepstakes machines which he wanted legalized in Illinois.

To that end, Weiss paid then-state Rep. Luis Arroyo $2,500 a month in hopes of pushing his agenda through. The sweepstakes legislation didn’t appear in Illinois’ gambling bill and, as a result, Weiss then conspired with Terry Link, a former senator and chief sponsor of the gambling bill.

When the scheme was discovered, Link cooperated with the authorities in hopes of reducing his sentence. Arroyo, on the other hand, was found guilty of additional bribery-related offenses and faced a sentence of up to 20 years in prison. The ex-representative was eventually sentenced to almost 5 years.

Judge Seeger, who also handed the sentence to Arroyo, is unlikely to reduce Weiss’ sentence as much as the businessman hopes.

Sweepstake Machines Remain in Illinois’ Gray Sector

Weiss was bullish on getting the sweepstakes machines legalized and has donated over $80,000 to sweepstakes machine legalization initiatives. He had many connections, allowing him to exercise certain influence to the point of being in a position to try to get certain laws passed.

One of the people he worked with, Alderman Gilbert Villegas, argued that sweepstakes machines are in Illinois, whether politicians like it or not, which is why they should be either outlawed or regulated.

Sweepstakes machines currently sit in Illinois’ legal gray area, mirroring other more unusual gambling offerings in other states, including skill games.

In unrelated news, Illinois recently stepped “away from incarceration and towards rehabilitation” by allowing former convicts to work at casinos in the state. While such people remain prohibited from serving in positions such as slot attendants and dealers, they can now serve as waiters, housekeepers, chefs, porters, etc.

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The globally-recognized online gaming and betting brand, Betway, continues to grow its presence in the United States. Currently, the company has a presence in eight different states, offering sports betting. Strategic jurisdictions where Betway offers online gambling, in addition to sports betting, are Pennsylvania and New Jersey, two markets with significant potential. Continuing its expansion, the company has now secured an online sports betting license for the regulated market in Illinois.

The latest announcement comes after the gambling regulator in the state, the Illinois Gaming Board, said Thursday that it selected Betway as the recipient of an online-only sports betting license. The betting and gaming company was one out of two that submitted an application for a license. Ultimately, securing the license enables Betway to provide online sports betting in Illinois. As an online-only sports betting license, the company won’t be permitted to receive in-person bets. At the same time, Betway won’t be required to sign a partnership with a retail partner in Illinois.

The state legalized sports wagering in June 2019. Then, in March 2020 it launched legal retail betting, followed by a mobile betting market launch in June of the same year.

Given that Betway holds an online-only license, the company will be subject to a higher license fee. Land-based sports betting operators pay a $10 million license fee, while online betting companies are subject to a $20 million license fee. Both online and retail betting companies are also subject to a $1 million renewal fee applicable every four years.

The Betting Company Joins a Competitive Market

The latest license, making Betway the newest addition to the regulated betting market in Illinois, doesn’t come as a surprise. This is because back in 2021, the company pursued options for entering the betting market in the state. However, in an unexpected turn of events at the time, Betway decided to back off from the process.

Now, a couple of years later, the company joined a handful of operators that have already established their presence in Illinois. Not unexpectedly, giants like FanDuel, DraftKings, Caesars and BetMGM, among others, have already established their presence within the Illinois online sports betting market.

Elsewhere, in Europe, Betway confirmed a new content partnership with Greentube, the NOVOMATIC Digital Gaming and Entertainment division, for the market in Belgium. The collaboration enabled Greentube to expand its footprint in the European country by delivering its engaging portfolio of content for the leading betting and iGaming operator.

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Governor J.B. Pritzker is now the one holding the fate of people who have served prison sentences and are looking to reintegrate into society with Senate Bill 1462 awaiting the gubernatorial signature before it may be passed into law.

Second Chance for Illinois ex-Convicts at Casinos

Senate Bill 1462 will not necessarily grant exclusive hiring rights to former cons, but it will certainly make the hiring pool a little broader, and it will allow for convicts who have not committed specific acts to be vetted and possibly hired into the hospitality industry, and casinos in particular.

The Illinois Gaming Board would still have a final say in the matter when convicts are being hired, as the regulator could not permit anyone who is deemed a threat to public safety, the state’s interests, or gaming integrity to work directly in the industry.

The implication of the gubernatorial signature could be quite significant, though. At least 1.5 million people in Illinois have some felony charges, which means that they are automatically struggling to find and secure employment, which pushes many into even more crime.

This is precisely the argument Sen. Robert Peters has delivered, arguing that making sure people have a choice and access to employment is something that would allow them to stay out of bad habits and backsliding into their own ways. Peters himself is an opponent of mass incarceration and has spoken avidly about the harm it causes to people’s lives in the long term:

Mass incarceration and profoundly deep income inequality are tied together. There is an inherent contradiction in saying that you want to be tough on crime while you are leaving people out of economic opportunity.

Sen. Robert Peters

Huge Opportunity and Demand for Willing Workers

At the same time, the bill could not have come at a better time, with a new casino resort on its way. The Freedom Center in River West is going to open a new casino in 2026, with some 6,000 jobs created in the process. Half of those are temporary and linked to the construction of the project, with $1.7 billion going down in the investment.

At the same time, 700 jobs are already available at a temporary site at Madinah Temple which launched earlier in the year. Gov. Pritzker should do right by Illinois citizens and help them get a second chance. Violent offenders and those guilty of particularly serious financial crimes would not be able to work in the industry under the current bill, however.

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The measure enjoys bipartisan backing with the Senate and House okaying the passage of Senate Bill 1462 with minimum opposition. Thanks to this document, casinos and the hospitality industry will be able to employ people who have felony convictions, as the state’s strategy to both expand the hiring pool in general and also to ensure that this target group can be integrated safely and reliably back into society.

Minimum Opposition from Members of the House and Senate

Understandably, some members of the public have grumbled against the decision, but lawmakers managed to demonstrate that voting on floors was overwhelmingly in support of the bill. Senate passed the bill with a 44-12 vote in favor in March.

Of course, convicted felons still need to go about securing a job based on the established order. A similar success story was written in the House where a floor vote saw 78 votes in favor against 27 lawmakers opposing the bill altogether.

Applicants would still need to obtain the necessary licenses for one, which are issued by the Illinois Gaming Board. The bill does acquiesce that further controls may be necessary to ensure that everything is in order. Therefore, the regulator has been granted additional powers to review each license as it sees fit.

Essentially, the watchdog will try to determine whether a specific employee could pose a danger to public security or the integrity of the gambling facilities. The bill is now going to most likely to be signed by Gov. JB Pritzker whose office has not commented on the developments. The change in hiring attitude is not necessarily prompted by goodwill among lawmakers, but there are certainly ethical implications as well.

Getting Workers in Casinos Could Be Hard

Convicted felons often find it hard to get back to work, because background checks immediately disqualify them from a range of jobs. New York, another casino state, has recently debated whether it should expand its hiring pool by including convicted felons as well, but no progress has been made over the past months.

In any event, Illinois could serve as a good success story and example of why letting felons to work at casinos may have a meaningful impact on the hiring pool of an industry that is struggling to find enough helping hands while also serving as a strong moral imperative for the country as well.

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Circa Sports Illinois has received its license to operate in the state, marking a significant milestone in the eagerly awaited launch of legal sports betting in Prairie State. The Nevada-based sportsbook operator obtained its sports wagering management services provider license from the Illinois Gaming Board on April 27 in Chicago, granting it the authority to offer online and in-casino betting services. 

Anticipation Builds as Circa Sports Prepares for Late August Launch in Illinois

This approval positions Circa Sports Illinois as one of the eight licensed sportsbook operators in the state. With this crucial step complete, the operator is now on track to debut in the third quarter of 2023, specifically targeting a late August launch, just in time for the start of the football season. 

Circa Sports has partnered with Full House Resorts to provide both retail and online sports betting platforms for the upcoming American Place Casino. As the main casino is still under development, Circa Sports will be temporarily located at “The Temporary” in Waukegan until the completion of the probationary stage required by the Illinois Gaming Board to receive a nonrestricted casino license.

The sportsbook’s launch is eagerly anticipated, as it promises to offer a diverse range of betting options on various sporting events. In addition to the sportsbook, American Place Casino plans to enhance its offerings by expanding operating hours and increasing the number of table games available to patrons. 

The introduction of the sportsbook is expected to attract a larger customer base and contribute to the overall lively ambience at American Place Casino. 

Illinois Considers Legalizing Online Casinos

Circa Sports partnered with Full House Resorts to enter the Illinois sports wagering market back in May 2022. Illinois marks the fourth state where Circa has expanded its operations, following Nevada, Iowa, and Colorado. 

The initial agreement term is eight years, with the potential for two four-year extensions. The CEO of Circa, Derek Stevens, expressed excitement about bringing their market-leading solutions to Illinois, highlighting the state’s status as a rapidly growing market in the sports betting industry. 

Meanwhile, in February Illinois State Senator Cristina Castro introduced bill SB1656 to legalize online casinos in the state. The proposed legislation would allow casinos and racetracks to apply for internet gaming licenses, with a $250,000 cost per license. 

The bill set a 15% tax rate on adjusted gross revenue and included provisions for responsible gambling and diversity efforts. While a previous attempt to legalize online casinos failed, the success of sports betting in Illinois has made lawmakers more receptive. 

The introduction of online gambling could provide a much-needed revenue stream, but it may face challenges due to existing tax revenue from video gaming terminals and the upcoming launch of new casino venues.

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SBC Americas reported that this legislation would allow casinos and racetracks in Illinois to apply for an internet gaming license, which can include up to three skins. The license will cost $250,000 and will be regulated by the Illinois Gaming Board.

The New Legislation Introduces a 15% Tax Rate

The new bill introduced by Sen. Castro stipulates that the tax rate on adjusted gross revenue would be set at 15%, and operators will also be able to deduct promotional credits. Unlike Illinois sports betting, there will be no in-person registration requirement for online casinos.

However, the legislation does address responsible gambling and diversity efforts. Operators must establish a self-exclusion list and display responsible gambling language on their websites. They will also need to provide annual reports on their diversity goals and progress.

The bill has also set out short deadlines for applicants, particularly those with existing interactive gaming licenses, to avoid the slow processes experienced by Massachusetts and Maryland in the sports betting industry.

Castro’s previous effort to legalize online casinos did not gain much traction, but with the continued success of sports betting in Illinois, lawmakers are now more open to expanding into the online gambling market.

Recent Report Showed Illinois Likely to Introduce Online Gambling

A recent report by Bonus.com revealed that Illinois may be among the states that legalize online gambling soon.

While the process of legalization may take some time, the benefits of a regulated gambling market are clear. The pandemic has had a devastating impact on the economy, and the legalization of online gambling could provide a much-needed revenue stream. Moreover, the regulation would ensure player protection, as licensed operators must follow rules and honor self-exclusion, whereas illegal operators do not.

Despite a failed attempt to pass the Illinois Internet Gaming Act in 2021, the topic may be up for discussion once again this year. 

However, the introduction of internet casino gaming in Illinois may still face an uphill battle, as the state already receives a substantial amount of tax revenue from video gaming terminals (VGTs). In 2022, Illinois received nearly $786 million in taxes from VGT play, which is more than double the revenue from traditional casinos outside of sports wagering. 

Furthermore, with the approval of six new casino licenses in the 2019 gaming expansion bill, including a location in downtown Chicago, it is expected that these venues will be operational by 2023, either temporarily or permanently. The added competition from these new establishments could make it even harder for internet casino gaming to gain traction in Illinois.

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