Could Illinois Score a Jackpot with Online Gaming?

With a big budget deficit and mountains of unfunded liabilities to try and manage, paired with the prospect of a shut off of federal funds coming through, the state of Illinois is thinking about trying to cash in on online gambling revenue.

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Revenue from gambling within the state of Illinois: casinos, video gaming terminals all over the place, sports betting etc. has brought in a lot of money. Not enough to cover state spending though. The unfunded liabilities are already locked in for the budget (pensions). Instead of curtailing spending within the budget, especially with a big question mark over federal money flowing to Illinois, the state thinks perhaps there is extra gambling revenue to be realized (won) online.

Currently seven other states have legalized online gaming and tax it, including: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. These states also allow for online sports betting. Illinois currently only has legalized online sports gaming (Draft Kings – FanDuel and specific casinos)

The rub on making this play is that the casinos and gaming outlets are afraid that the introduction of online gaming (think slots) will cut into their revenue. Not wild speculation. Their perspective is that their clientele has a finite amount to gamble with. If that clientele can just online game from home, Illinois may still get that money, but the casinos and gaming locations throughout the state will suffer.

Others believe that online gaming is already occurring in Illinois illegally through overseas companies via apps, and that Illinois is missing one hundred percent of that revenue. Estimates are at $775 million over five years. What are the odds that revenue from online gaming can cover Illinois debts? Should we let it ride?