When governor J.B. Pritzker approved bill 690 into law June last year, all the sports bettors in Illinois sighed in relief. It was the best shot at betting legally and for good reasons.
Under the bill, investors could open six new casinos, 20 sports betting shops, and thousands of casino games. Slot machines and card games have been around in Illinois’ restaurants and bars since 2012.
So, it’s the sports betting side of things people were anxious about. With bookmaking within stadiums, at casinos, betting shops and online will soon be possible. But will they lead to economic growth for Illinois?
$756M Annual Revenues by 2025
A California-based analytical firm estimates Illinois will be generating up to $756M from sports betting annually by 2025. That is roughly seven times more than Delaware generated from the same industry last year.
For clarity, Delaware legalized sports betting in 2018. Compared to New Jersey, however, Illinois will be accruing far much less. Sports betting added $4.5 billion to Garden State last year. Most of the revenue sparks from online gambling.
In Illinois, gamblers will have to wait until 2022 before they can bet on sports through their mobile devices. But when this happens, it might fuel gambling to the extent that the state generates much more money than is projected.
Does that mean there’s no way to bet on sport online in Illinois? No. As www.online-gambling.com/us/illinois/sports-betting/ reports, Illinois sports betting laws can’t be exercised out of the state. And that means people in the state can safely wager on bookie sites located anywhere else besides Illinois.
$100M in Tax Revenue
The Illinois Economic Policy Institute did a study in collaboration with the University of Illinois last year and made an astonishing conclusion. The Illinois government could generate up to $100M in taxes through sports betting every year.
Coincidentally, $100M is the same amount New Jersey made by taxing bookmakers in 2019. That means the Mid-Western State can earn a similar amount of money from the industry.
Unfortunately, critics believe there’s an issue with Illinois’ gambling bill that could reduce its tax potential. Taxes. Illinois will charge bookmakers 15-17% of their gross income and an extra $4M every four years.
Critics believe high taxes will drive betting income to black markets, reducing Illinois’ tax income significantly. On the bright side, however, NJ is generating $100M while taxing both bettors (8.5%) and bookmakers (13%).
2500+ Jobs
One of the biggest benefits of legalizing sports betting in will be witnessed in the number of jobs created. Bookmakers are expected to develop at least 2500 careers in the form of attendants, managers, odd makers, security officials, and marketers.
This estimate is based on the six casinos and 20 land-based betting locations set up in the state. With the addition of online bookies, sports betting could help create over 4000 jobs.
Of course, more jobs mean more tax income for the state. It could also be a boon for Illinois’ economy. Additionally, it means less money lost to black markets and offshore bookies that accept gamblers from Illinois presently.
Millions of Funds for Infrastructure
Like many states, Chicago’s annual revenue will be heavily reduced this year. Lockdowns, job losses, and business closures will mean tax revenue will be paid to the state. In turn, this might stall some infrastructural projects or investments in education.
Luckily, the state’s budgetary deficit could be offset by tax income generated from sports betting. It might not earn a lot of money this year since games were also affected. But by next year, Illinois will have a significant chunk of tax income it can use on infrastructural development.
New Jersey is an excellent example of a state using tax revenues to invest in things that matter. The Garden State is heavily investing in clean water and road projects. And officials believe some of these projects wouldn’t be possible without the extra income from gambling sources.
Reducing Money Lost to the Black Market
Sure, experts believe Illinois’ sports betting law has some weaknesses that will continue to encourage black-market betting. But on the upside, legalizing the industry will attract thousands of punters to authorized betting shops.
Here’s why. Black market betting shops aren’t famous for protecting players. Instead, they have a reputation for scamming gamblers at will. They don’t provide customer service either. And worse, they are illegal.
With sports betting legal, Illinois will recover money traditionally lost to black market bookmakers. But more importantly, punters in the state will have a safe way to bet on sports. This includes problem gamblers—a group of people Illinois can now protect since they will be easier to identify.
Betting Could Boost Sports Attendance
Sports attendance has been declining around the US for a long time. Colleges are the hardest hit by this trend and for genuine reasons. In a recent interview by NCAA, these are the reasons people gave for opting not to attend sports games:
· Tickets are too expensive
· Games take up to four hours
· Getting in and out of stadiums is a hustle
· It’s easier to watch sports on TV
The fourth reason is hard to beat. TV and streaming networks make watching sports an effortless experience. And with mobile betting becoming legal, not everyone will travel to arenas for in-stadium betting adventures.
However, the presence of betting shops and booths within stadiums could boost attendance for some sports. It could also drive fanbases now that more people will be interested in sports as they seek to profit from sports betting.
Of course, more sports attendance is a boon for everyone in the industry. Franchises will make more money from tickets. Bookmakers will have more customers, and Illinois will boost its tax income.
Conclusion
Sports betting is now legal in Chicago. Soon, there will be twenty sportsbooks where you can use to wager on games. By 2022, betting online will also be permitted. So, yes, start sharpening your sports betting skills.
