Illinois Delays Offering New Casino Licenses Once Again

For more than a year, lawmakers in Illinois have been working to expand the state’s gambling industry. Under a new capital plan, several new casinos will begin opening around the state. Reports have surfaced today that indicate these new casino licenses won’t be handed out for at least another six months.

Many analysts predicted this would be the case. Illinois continues to push its gambling expansion plans back for obvious reasons this year. Today, we’re going to talk about what this means for the casino industry here moving forward.

Let’s get into it!

Illinois’ Plans to Expand Gambling Options, Explained

The state of Illinois is known for having one of the largest casino industries in the Midwest. There are now a number of different casinos spread around the entire state. These venues help to bring the state valuable revenue each year.

For years, officials in the state government have been calling for more casinos to open in the state. Finally, last summer, Governor Pritzker approved a new capital plan that allows several new casinos to open here. That includes a new casino-resort in the city of Chicago.

Many were surprised to see the state make this decision. It didn’t take long for different city leaders to begin pushing to obtain a casino license. There are several different cities across the state that have been granted preliminary approval to host one of these new casinos.

This new capital plan also allowed the state to legalize and regulate sports betting. Here, both land-based and online sports gambling is now available. This industry is now bringing the state valuable revenue.

Unfortunately, these plans have been delayed throughout this year. For obvious reasons, the state leaders here have been focused on other issues. It now appears that issuing new casino licenses here will be delayed.

Here’s a quick look at what this means for the state’s growing casino industry.

Lawmakers Have Delayed Issuing New Casino Licenses in Illinois

When the capital plan in Illinois was approved last year, gambling fans in the state had reason to be excited. Hope was that the casinos in this state would already be under construction by now. It’s now becoming clear that things will take much longer to get up and running than initially expected.

Reports have surfaced this week that claim the new casino licenses in Illinois won’t be issued for at least six months. Illinois Gaming Board administrator Marcus Fruchter spoke about this delay with the media this week. He gives a clear reason for why things have been moving so slow on this front.

“Like all government agencies and private businesses, the board’s work has been impacted by COVID-19,” Fruchter said. “This is not an excuse or a crutch. It is simply a recognition of the realities that work and life are different in a global pandemic.”

This delay means it will be at least six months before construction begins on any new casinos. Several groups hoping to operate a new casino in the state have expressed disappointment with this development. Some actually feel this could help things over in Chicago.

Initially, lawmakers set unusually high tax rates towards the casino-resort in Chicago. This kept nearly all casino companies from expressing an interest in running this new venue. That tax rate has since been changed, yet Mayor Lightfoot is still having a difficult time finding a casino to operate this property.

A little extra time may help to solve this problem. We’ll be sure to offer updates as soon as any casino licenses start being awarded here.

US Casino Industry is Still Struggling Heading into 2021

Illinois isn’t the only state that’s seen delays expanding its casino industry. Many areas have been forced to hold off opening new casinos and passing new gambling legislation. That includes Las Vegas, where a number of new casino-resorts will soon open.

Recently, Circa Casino-Resort finally opened its doors in Downtown Las Vegas. This venue was initially expected to open months earlier. The new Virgin Hotel-Casino has also seen its opening date pushed back to early 2021.

Just about every state with legal casinos has seen dips in revenue, too. Nevada continues seeing massive drops in its gambling earnings every month. That includes September, when the state saw a 22.4% drop in casino revenue when compared to the same month in 2019.

Sports betting revenue is proving to be a saving grace for many gambling companies. Online sports betting, in particular, is helping to bring these companies a huge amount of revenue right now. It should come as no surprise to hear that so many states are now looking more into the legalization and regulation of sports wagering.

Illinois is profiting from its internet sports gambling options right now. Officials claim it will be more than half a year before any new casino licenses are awarded here, though.

Are you surprised to see things being delayed in Illinois once again? When do you expect the US casino industry to fully recover? Let us know in the comments section below!