The Illinois Commission on Government Forecasting and Accountability has released a new report on video and casino gambling, which concluded that gambling as a whole “has actually increased statewide by a significant margin,” from $1.651 billion in 2012 to $3.031 billion in 2019.
But while video gambling has grown, gambling at the state’s 10 casinos has declined.
Video gambling launched in Illinois in 2012. Since then the number of machines in operation has jumped from 2,293 to 33,294 in 7,180 locations. And the income generated by them has increased from $12.3 million to $1.677 billion.
At the same time, the state’s casinos generated $1.354 billion in 2019, less than the $1.375 billion collected in 2018, and much less than the $1.639 billion collected in 2012.
Commission analyst Eric Noggle said the decline in casino revenue “marks the seventh consecutive calendar year that adjusted gross revenues have fallen in Illinois compared to the prior years.”
However, the expansion of gaming passed last year gives casino operators hope. Legislators approved increasing the number of casinos from 10 to 17, including in Chicago and Danville, and allows casinos to increase gambling positions from 1,200 to 2,000. Also, two new racinos were approved.
Video gambling parlors are also able add one machine, for a new total of six. “It is expected that the number of machines will increase significantly in 2020,” the commission report stated. The new law also legalizes sports betting, providing a new revenue stream for state and local governments.
Still, while gambling brings in revenue in the low billions of dollars, the state’s budget deficit, unpaid expenses and underfunded pensions are in the high billions. That’s why many elected officials and other are counting on the casino proposed for Chicago to provide a new source of revenue. The law allowing that casino would impose prohibitive taxes, however. Chicago Mayor Lori Lightfoot is trying to work out a compromise agreement with Governor J.B. Pritzker and lawmakers, and the issue is certain to be debated in the current legislative session.
