Eye On Illinois: Gambling revenue looks here to stay but mix of sources will keep evolving

As revenue gambits go, relying on legal wagering to bolster state coffers has been a macro success. But that big picture is composed of micro markets with varying qualities of future forecasts.

As Hannah Meisel reported for Capitol News Illinois, the last fiscal year saw more than $2 billion in tax revenue from gambling, a record high. Although I’ve written regularly about the explosion in the sports betting market, state figures show video gaming terminals continue to be the “largest driver of increased per-capita spending on all types of wagering in Illinois over the last five years.”

With more than $7 billion wagered during fiscal 2024, that means the average resident spent $560 on some form of betting. My family of six spent a total of $20 on Illinois Lottery scratch cards for Christmas stockings, but we all benefit from the way the tax revenue filters through the system.

As Meisel noted, horse tracks and riverboat casinos continued a downward trend. That’s unsurprising given the almost 50,000 new video betting terminals since 2012 and the ability to place bets on countless other sports and lotto games without so much as leaving the couch. These shifts in consumer trends weren’t explicitly intended to eliminate jobs at more traditional betting venues, but anyone could’ve seen the odds of that happening 15 years ago, so the actual development is anything but surprising.

Meanwhile, Gov. JB Pritzker and General Assembly Democrats calculated they could squeeze even more out of the flourishing industry sectors, adding 1% to video gambling taxes to raise an extra $35 million for infrastructure. Taxes on sports books will shift from 15% for everyone to a sliding scale where the smallest operators will pay 20% while the big dogs cough up 40%. That should generate $200 million for the General Revenue Fund.

I could do without video machines infiltrating places like bowling alleys and restaurants, and go the rest of the time without seeing another strip mall gaming parlor. I don’t bet on sports and resent how legalized wagering has subverted a century of broadcasting and commentary. But personal observations aside, any discussion of government income must acknowledge the unavoidable human cost.

Much like with legalized alcohol, people in the gambling business pay the government’s exorbitant rates because selling their wares to a hungry public is wildly profitable even after Springfield takes its cut. It’s in everyone’s best interests for participants to enjoy in moderation to minimize the horrible effects of those who cannot escape the grips of addiction.

And if those folks didn’t spend the money here, they’d do so elsewhere. It’d arguably be government malpractice to cede the turf. So going forward, this is our state. Bet on it.

• Scott T. Holland writes about state government issues for Shaw Local News Network. Follow him on X @sth749. He can be reached at sholland@shawmedia.com.