With the end of the legislative session coming up in two days, the legalization and regulation of online poker in Illinois is still a possibility, as changes to proposed legislation continue to be made. With the third and latest amendment, filed by Illinois State Senate President John Cullerton (D) on May 25th, House Bill 4148 allows online gaming licensees to operate on a gaming network operated by the Department of the Lottery.According to the bill, a Division of Internet Gaming would be created under the auspices of the Illinois Department of the Lottery. This Division is, in turn, authorized to “establish an internet gaming platform.” In other words, the lottery is in charge of online gaming in the state.
Interestingly, this new division will not actually run the games. That responsibility will go to affiliates who will be required to fork over $5 million to apply for an internet gaming license. Those entities eligible to apply for a license will be those who are already licensed under the Riverboat Gambling Act or the Illinois Horse Racing Act of 1975. There are currently 16 entities that would qualify, meaning the applications alone could swell the state’s coffers by as much as $80 million.
While the licensees would be the ones to offer the games, the proposed Division of Internet Gaming would govern what types of games and stakes are permitted, determine the rake structure, and establish the rules for players and poker room affiliates.
The Division would not reinvent the wheel when it comes to online poker software; it will find a vendor to provide the platform.As is the case with similar measures in other states, online gaming would be restricted to customers within Illinois' borders who are 21 years of age or older.
Two weeks ago, Cullerton wrote a letter to fellow members of the state legislature as well as Governor Pat Quinn urging them to consider making Illinois the first state to legalize intrastate online gaming. Cullerton is fully aware of efforts in other states, particularly Nevada, to legalize and regulate the industry, but he is unimpressed. “Our study of these frameworks indicates that they are ill-suited to harness i-gaming’s dynamic nature and potential in an ethical and socially responsible manner that maximizes revenue,” he wrote.
He added, “Certain forms of i-gaming, especially poker, rely on large pools of potential players, and states that move swiftly to design a system that captures the widest audience of participants will have an advantage in terms of long-range success.
“We estimate that the potential new revenues to the state are in the hundreds of millions of dollars. In turn, the state could organize the first major poker pool, garner worldwide popularity, and position itself as a ‘hub’ for multi-state and international i-gaming.”
In addition to the rapidly approaching close of the legislative session, Cullerton wants Illinois to act quickly because he fears that potential pro-online gaming legislation at the Federal level could restrict the ability of individual states to create their own regulations.
Illinois is no stranger to online gaming, having become the first state to make individual lottery tickets available for purchase on the internet on March 25th. As luck would have it, that was the week of the record-setting $656 million jackpot in the Mega Millions game. Internet sales hit $425,000 by 3:00pm Thursday for the Friday night drawing. The day of the drawing saw $247,000 in lottery ticket sales by 4:00pm.The process was not without its snags, however, as the Illinois Lottery's website went down for about 30 minutes on that highly anticipated Friday.
