Illinois Witnesses Debate Over Video Gambling and Sweepstakes Machines
In the state of Illinois, video gambling and casino gaming continue to be legal, albeit subject to enhanced regulation and advertising restrictions. This is particularly true in the cities of Rolling Meadows and Chicago, where the Illinois Gaming Board (IGB) enforces uniform rules to protect vulnerable populations.
Rolling Meadows, a city known for its leaders in the public sector related to gambling regulation and industry operations, is currently considering limiting the number of video gambling locations. As of now, ten businesses in Rolling Meadows feature video gambling, with two more expressing interest in adding it. However, the city continues to follow state regulations, with no separate limitations enacted so far.
Chicago, the state's largest city, also falls under these statewide Illinois gaming regulations. The city has seen an increase in the use of sweepstakes machines, which pay out coupons that can be exchanged for cash or used for merchandise, despite the ongoing ban on video gambling terminals.
The proposed limit for video gambling devices would apply not just to businesses, but potentially to certain neighborhoods, according to a proposal from Alderman Kevin O'Brien. The suggested limit may also find echoes in nearby cities, such as Schaumburg, where Rolling Meadows Alderman Lara Sanoica wants to see a similar approach to limiting video gambling.
Financially, operators such as PENN Entertainment report robust revenues from interactive gambling segments, indicating a strong market environment. However, profits from sweepstakes machines benefit only the machine operators and businesses that house them, operating in a grey area of gambling legislation and escaping regulation and taxation.
The state's recent gambling expansion bill allows Illinois to increase the number of video gambling machines. Last year, the first legal sports book opened in Illinois at Rivers Casino in Des Plaines. Despite the delay due to the coronavirus outbreak, Illinois sports betting was initially planned to be operational for the March Madness college basketball tournament.
Chicago's financial conditions have put pressure on the city to permit video gambling machines, but earlier attempts to get a casino in Chicago failed due to taxes being "too onerous." Chicago Mayor Lori Lightfoot predicted revenue from a Chicago casino to total $1.2 billion. However, under the state's current gaming expansion law, gaming revenue at the Chicago casino would be effectively taxed at 72 percent.
In conclusion, video gambling and casino gaming remain legal in Rolling Meadows and Chicago within Illinois but are tightly regulated with recent enhanced advertising restrictions and responsible gaming safeguards by the Illinois Gaming Board. The expansion of online casino legalization appears likely in the near term, supported by both strong revenue performance and political momentum.
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