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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Petersburg Governor Glenn Youngkin has sent Senate Bill 628 back to the General Assembly with a recommendation to amend the legislation, indicating that a do-over vote is unnecessary for setting up Petersburg as the fifth casino-host city in Virginia. While this move has raised some concerns, it should not affect the bill’s expected success.

The Legislation Remains on Track

The bill, one of 11 amended by the Governor’s office on Friday, had a hastily added re-enactment clause attached to it, requiring it to be reconsidered by the General Assembly even after the House of Delegates and Senate had approved it in the 2024 regular session. Governor Youngkin was surprised by this sudden update, motivating his decision to mandate a do-over.

By amending the bill instead of vetoing it, Youngkin aims to ensure that it proceeds smoothly through the legislative process and gets in front of Petersburg’s voters this November. Unlike a veto, requiring a two-thirds majority in both chambers to override, an amendment only needs a simple majority, significantly improving Bill 628’s chances.

The Governor’s request for the General Assembly to review the re-enactment clause raised uncertainties about the bill’s fate as the bill’s second vote must happen during a regular or a special session. Lawmakers reconvene later this month, but the casino re-vote cannot occur then. However, a special session later this year could provide another opportunity for the vote.

Petersburg’s Casino Dream May Soon Become Reality

The establishment of Petersburg as the fifth casino-host city aims to bolster the economies of historically disadvantaged communities in Virginia. Although Bristol, Danville, Norfolk, Portsmouth, and Richmond were the state’s original choices, only Richmond did not pass referendums. With Richmond stepping back, Petersburg now has the opportunity to secure the final casino license.

Sen. Lashrecse Aird, one of the bill’s primary sponsors, remained optimistic regarding its chances. She highlighted the importance of allowing Petersburg to obtain the fifth casino license and for citizens to vote in a referendum. Aird was looking forward to hearing the proposals of interested operators, hoping they would bring lasting prosperity to the region.

With the removal of the re-enactment clause, this legislation moves one step closer to final approval to allow Petersburg to obtain the fifth and final license.

Sen. Lashrecse Aird

The move to amend the legislation comes after Governor Youngkin signed bills earlier in the week preventing Richmond from revisiting casino referendums until Petersburg has its chance. An upcoming town hall meeting hosted by Senator Aird will allow citizens to meet the five vendors who have submitted bids for Petersburg’s casino business, indicating the significant progress in the casino licensing process.

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Amidst budget negotiations in Maryland, hopes for the legalization of online casinos have been dashed for the year 2024. With online casino revenue not finding its way into the state’s budget agreement, it appears that Marylanders will have to wait until at least 2027 to see any progress in this regard.

Maryland’s Legislative Session Ends Without Inclusion of Online Casino Revenue

The state’s legislative session saw no inclusion of online casino revenue as a funding source in the budget deal reached on April 3. This outcome pushes any potential discussion on online casino legalization to the following years.

Although there were initial hopes for a referendum to reach Maryland voters by 2026, the recent developments suggest that such discussions may not gain traction until later. 

Sen. Ron Watson expressed that given the failure to pass legislation this year, the earliest possibility for mobile casino apps to go live in Maryland would be in 2027.

Despite Maryland already permitting legal sports betting and hosting brick-and-mortar casinos, the road to online casino legislation seems fraught with obstacles. Stakeholders in the online casino industry will need to address concerns regarding problem gambling and potential competition with existing physical casinos to garner support in future sessions.

Online Casino Legislation in Maryland Faces Resistance

The exclusion of online casinos from the state budget is particularly significant considering the initial momentum behind the proposed legislation. The House had passed a bill supporting online casinos, including it in its budget proposal, but Senate leadership was firm in their stance against such measures.

Proponents argued that regulated iGaming could address illegal gambling, but debates persisted over potential job losses and addiction risks, with the bill undergoing significant changes to address various concerns. 

Several challenges contributed to the demise of the online casino legislation. Notably, not all casinos supported the initiative, with Maryland Live! and Ocean Downs Casino expressing concerns about potential job losses and cannibalization of their businesses. Arundel County, the county where Maryland Live! Is located, also championed a study that corroborated the concerns regarding cannibalization.

Additionally, labor unions were strongly opposed to the legalization efforts.

At the same time, a recent study commissioned by the Sports Betting Alliance (SBA) challenged the conventional belief that online casinos cannibalize traditional brick-and-mortar establishments, revealing instead a symbiotic relationship between the two. 

Conducted by the Analysis Group, the study examined six states and found a significant increase in overall gaming revenue, suggesting that online gaming complements rather than competes with physical casinos.

However, despite these setbacks, there remains a glimmer of hope for proponents of online casinos. The fact that the Maryland House managed to pass the legislation demonstrates some level of support, suggesting that future sessions may see renewed efforts toward legalization.

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Amid the growth and expansion of legal sports wagering across the United States, the National Collegiate Athletic Association (NCAA) announced its intentions to support changes to betting legislation, seeking to ensure the integrity of its competitions. Besides strengthening integrity, the proposals seek to raise awareness of problem gambling and protect student-athletes from coercion or harassment.

The NCAA acknowledged that there are currently 38 states that have implemented laws that legalize sports wagering. However, it said, that while some states offer complex rules for protecting of the athletes, others do not. This is why the Association surveyed student-athletes, seeking to improve the regulations and develop a model that it would propose to different states. The changes seek to protect the student-athletes, game officials, coaches, as well as other sports personnel, shielding them from betting-related harassment, problem gambling or malpractices related to integrity.

Ultimately, the NCAA said that it plans to collaborate with lawmakers to implement the changes across different states. It supports “mandatory reporting hotlines for gambling authorities to report such behavior to law enforcement,” as well as an increase of penalties for bettors that engage in harassment of student-athletes. Additionally, the Association proposes mandatory education for gambling operators that would enable them to identify harassment.

Further changes that would be proposed include ramped-up efforts against underage sports wagering. Additionally, the NCAA’s proposal calls for the inclusion of details about the harassment hotline and information on problem gambling within any sports betting advertisements. Last but not least, it said that revenue generated from betting should be dedicated to the education of students from higher-risk populations.

Changes to Protect and Educate Student-Athletes

Morgyn Wynne, the vice chair of the Division I Student-Athlete Advisory Committee, revealed that currently, the well-being and health of student-athletes is of utmost importance. She added: “With the legalization of sports betting, it is imperative that we take a proactive approach to protecting student-athletes from the potential of negative engagement with bettors.” Finally, Wynne supported legislative changes that seek to prioritize the protection of student-athletes and safeguard them from harmful activities.

“The NCAA is making changes to help student-athletes make smart choices when it comes to sports betting, but given the explosive growth of this new industry, we are eager to partner with lawmakers, regulators and industry leaders to protect student-athletes from harassment and threats.“

Charlie Baker, president of the NCAA

Charlie Baker, NCAA’s president, revealed that the Association is collaborating with student-athletes to ensure they make smart choices when it comes to wagering. Still, he added that the NCAA is motivated to collaborate with regulators and lawmakers to ensure the protection of student-athletes. Baker spoke about the betting legislation in different states, saying that some offer protection but others need to do more.

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Curaçao, the Dutch Caribbean island that everybody in the iGaming world knows very well, is currently going through a transformation process when it comes to licensing online casinos as the government implements the National Ordinance for Games of Chance.

The new legislation comes with a new licensing process, which kicked off at the start of September, when the Gaming Control Board has officially opened the license application portal.

The new portal is processing new applications under the rules of the current legislation while also registering all sublicensees which want to continue their operations without interruptions when the National Ordinance for Games of Chance go into effect. Moreover, when the new law comes into force there will be a new regulator in charge: the Curaçao Gaming Authority.

The new law stipulates that only companies that are registered in Curaçao can receive licenses. That leads to two main obligations for online casino operators: have a registered Curaçao address and employ at least one director in the country.

Until the National Ordinance for Games of Chance comes into effect, the government will process all new applications under existing legislation, so for the moment the operators are not required to have a physical office on the island or local employees.

In fact, those two aspects are the main changes that affect online casino operators that apply for licenses in Curaçao and for current license holders that desire to continue their operations.

The portal set up by the government contains all necessary information on how to apply for a gaming license, along with guidance on the entire process. Operators can submit their application starting on November 15.

Application Process in Detail

The application process is not very complicated, companies have to fill in just three forms: an application form, a corporate disclosure and a personal disclosure. All three forms are available to download from the government portal.

The personal disclosure form must be filled out for every Ultimate Beneficial Owners which hold at least a 10 percent stake in the respective company. The form also applies to top-level executives such as Chief Executive Officers.

The government has set a processing interval of two months, but that is the case only for applications which are filled out correctly. Applicants that are successful will receive a provisional license for six months and during that period they must submit audited policies and procedures.

Once the National Ordinance for Games of Chance will come into effect, the government will proceed with transferring all existing applications over to the new format, regardless of the stage of the application.

Source: “What will Curaçao’s transition period look like?“. iGaming Business. September 15, 2023.

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An increase in the number of lawsuits levied abroad against Malta-based operators has prompted the government to consider introducing additional legal protections. The proposed amendment aims to shield businesses from potential liability arising from legal actions initiated in foreign jurisdictions. However, European lawyers heavily criticized the new measures, arguing Malta was trying to circumvent local courts.

Gaming Companies Will Have Another Layer of Protection

The proposed amendment is a response to growing concerns within the industry about the potential risks associated with cross-border legal actions against operators. By establishing clear guidelines and limitations, Malta aims to provide operators with greater regulatory certainty, enabling them to focus on growing their businesses and delivering safe and responsible gambling services.

Introducing such legislation would primarily benefit operators offering their services in Europe’s gray market, skirting local restrictions to provide an alternative to regulated companies. These operators often have significantly fewer restrictions and frequently draw the ire of local regulators. If the new bill passes, such businesses will operate with relative impunity.

The Court shall refuse recognition and, or enforcement in Malta of any foreign judgment and, or decision.

Malta Bill 55 Gaming Amendment

The bill also addresses the issue of “forum shopping,” wherein plaintiffs deliberately choose jurisdictions that may be more favorable to their claims, irrespective of the operator’s primary licensing jurisdiction. By setting explicit criteria for foreign jurisdiction enforcement, Malta intends to discourage such practices and promote a fair and balanced legal landscape for operators.

The Bill Can Obstruct EU Judiciaries

Malta’s decision to proceed with the legislation had an immediate impact abroad. Austrian and German lawyers have approached the European Commission, arguing Malta was attempting to obstruct European courts. If successful, the amendment will immediately interfere with enforcing past and present offenses, potentially nullifying several verdicts against Maltese operators.

Karim Weber and Benedikt Quarch represent clients engaged in legal battles against Maltese operators violating local regulations. If successful, the operators must reimburse the plaintiffs’ deposits and possibly suffer additional sanctions. According to the lawyers, the amendment would deprive EU citizens of their fundamental right to legal protection.

The government of Malta has no right to intervene in the independent arm of the judiciary…, especially when (it) has a vested biased interest totally in favor of gaming companies.

Lawyers Karim Weber and Benedikt Quarch

In 2021 Malta was put on FATF’s greylist for systemic regulatory and enforcement failings. Even though the country eventually appeased the financial watchdog through substantial reforms, corruption, and money laundering remain endemic issues that still plague the nation’s reputation. With tensions quickly rising, the European Commission should soon settle the matter and prevent potential escalation.

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