Illinois Casinos See Revenue Growth, But iGaming Remains Tricky

For the first time since spring, Illinois' casino industry posted positive monthly revenue growth. In August, the state’s 15 casinos reported a combined win of $140 million, a 3.1% increase from July’s $135.8 million. This resurgence, however, comes against the backdrop of ongoing debates about legalizing online casinos, a sector with untapped potential in the state.

 

August Casino Revenue: The Numbers Behind the Growth

In August, nearly all of Illinois' casinos reported revenue increases, with Rivers Casino and Grand Victoria Casino leading the charge. Rivers Casino alone posted a $2 million increase month-over-month, while Grand Victoria added $617,102 to its July earnings. Together, these two casinos accounted for a significant portion of the overall revenue growth.

Here's a look at the top five casinos by revenue growth:

• Rivers Casino: $43.5 million (up 4.82% from July)
• Grand Victoria Casino: $11.9 million (up 5.45%)
• The Temporary by American Place: $9.2 million (up 4.18%)
• Walkers Bluff Casino: $3.05 million (up 13.63%)
• DraftKings at Casino Queen: $7.2 million (up 5.06%)

Walkers Bluff Casino saw the most significant percentage increase, growing by 13.6%, though its total revenue was lower than some of its counterparts. This increase in revenue pushed the state's year-on-year growth rate to 12.5%, a notable achievement in a highly competitive industry.

Despite these positive numbers, Illinois' casino operators still face challenges, primarily the ongoing prohibition on online gambling in the state.

Missed Opportunities

Illinois is a top earner in land-based casino revenue and sports betting. However, the state has no presence in the online casino market, missing out on potentially lucrative returns. Online casinos have proven to be highly profitable in states that have legalized them, with July revenues from online gaming reaching over $600 million nationwide.

For context, neighboring states with legal online gambling, such as Michigan and Pennsylvania, posted impressive online casino revenues in July 2024. Michigan earned $191.4 million, while Pennsylvania led the nation with $215.4 million. In comparison, if Illinois had legalized online casinos, projections suggest it could generate over $200 million a month, comparable to states like Pennsylvania.

Based on per capita revenue from other states, Illinois could potentially see monthly revenues of $210.8 million, placing it as one of the leading markets in the country. Yet, despite these projections, two legislative attempts to legalize iGaming in Illinois this year have failed. One of the proposed bills included a 15% tax rate on online gaming revenue, which would have generated hundreds of millions in additional tax revenue for the state.

One of the reasons iGaming legislation struggles to gain traction in Illinois is the fear of cannibalization. Land-based casino operators often worry that online gaming will siphon off customers from physical casinos, thereby hurting their revenue. While this fear is not unique to Illinois, it remains a significant obstacle.

Opposition also comes from social concerns. Online casinos tend to raise concerns among anti-gambling advocates who believe that the ease of access to gambling online could lead to higher rates of addiction. This fear has contributed to the slow pace of legalization, with only seven states currently allowing online casinos.

 

The Future of Illinois

Illinois is at a crossroads. The state’s brick-and-mortar casinos continue to perform well, as evidenced by August's 3.1% revenue increase. But without the addition of online casinos, Illinois risks missing out on the next phase of gaming revenue growth.

As neighboring states reap the benefits of legalized iGaming, Illinois remains on the sidelines. If the state can overcome political opposition and public skepticism, the addition of online casinos could make it one of the largest gaming markets in the country, driving substantial tax revenue and reshaping the industry’s future. Until then, Illinois casinos will continue to rely on their physical locations to drive revenue growth, even as their counterparts in other states push forward into the digital age.

In summary, while Illinois’ land-based casinos posted solid growth in August, the lack of iGaming legislation leaves untapped potential on the table. With substantial projected revenue from online casinos, lawmakers face increasing pressure to navigate the complex landscape of cannibalization fears and social concerns. The question remains: Will Illinois be able to capitalize on this opportunity, or will it continue to lag behind in the online gaming revolution?