Casino Relocation in Illinois: Analyzing the Impact of the Proposed Law

Certain casinos in Illinois could soon qualify to relocate
Illinois’ gaming industry is dominated by a handful of casinos
The number of Illinois casinos expanded to 17 last year

Illinois is among the riches gaming states, with gamblers in the Land of Lincoln losing more than $2.9 billion last year to casino slots, table games, video gaming terminals, and oddsmakers.

casino revenue — Image by Greyerbaby from Pixabay

While Illinois’ casino market is flourishing — today home to 17 physical gaming floors — not all properties are reaping the same benefits. “It’s been clear for years that there’s a handful of casinos that do better than others,” says Illinois Rep. Joe Sosnowski (D-Winnebago).

Rep. Sosnowski recently introduced House Bill 4070, seeking to mandate the Illinois Gaming Board (IGB) to assess the performance of each casino and identify potential new locations for those that are struggling. The proposal would allow up to three casinos to relocate to potentially more profitable areas.

“The gaming industry supports almost 30,000 jobs and generates nearly $2 billion in tax revenue that funds essential state services,” Sosnowski told the media. “We must provide room for adaptability in our laws so that struggling casinos can thrive in better-suited markets within our state.”

In addition to the 17 brick-and-mortar and riverboat casinos, Illinois is also home to approximately 9,000 video gaming locations that provide slot-like terminals and 14 retail sportsbooks. Sports betting is also available online through ten operational sportsbook platforms.

Which Illinois Casinos are Labouring?

Out of 16 casinos that operated throughout 2024, the three with the lowest gaming revenue were the Golden Nugget Danville, Agrosy Alton, and Walker’s Bluff in Carterville, generating $37.1 million, $34 million, and $32 million respectively.

Rivers Des Plaines topped the list with a staggering gross gaming revenue (GGR) of $516.1 million, followed by Grand Victoria in Elgin at $138.8 million. Other top performers included the temporary Bally’s Chicago at $124.9 million, Harrah’s Joliet at $124.6 million, and American Place at $108.1 million.

Sosnowski’s bill will instruct state regulators to track the performance of each operating casino based on adjusted gross receipts reported to the Board over the past twelve months.

Walker’s Bluff, which only opened in August 2023, is likely not seeking a new location while Harrah’s Metropolis, boasting a GGR of $58 million for 2024, and Golden Nugget, who opened in May 2023, may contemplate a relocation depending on the market’s response.

The IGB will set forth a request for proposals from counties and municipalities interested in welcoming a casino once their survey results are released.

Community Protections

The potential relocation of casinos has sparked concerns in affected communities. To address this, Sosnowski has included a provision requiring that any municipalities impacted by these relocations be compensated.
Specifically, towns losing a casino would receive a “doubled share of tax” compared to what they previously earned prior to the relocation.

“The municipality or county that loses a casino would receive a share commensurate with two times what they are currently allocated, acknowledging the integral role gaming revenue plays in funding local services,” detailed Sosnowski’s office.

House Bill 4070 is currently under consideration by the House Rules Committee.

Summary

In summary, Illinois is exploring significant changes within its gaming industry by potentially allowing struggling casinos to relocate for better business prospects. This legislative move not only aims to enhance the performance of these casinos but also includes safeguards to support communities that may be adversely affected by such relocations. As the bill progresses, its implications may shape the landscape of gaming in Illinois for years to come.