State Revenue from Casino Continues to Drop as Illinois Prepares for Massive Gambling Expansion
Illinois wants to expand with six new casinos adding through slot machines and table games, but the revenue from the existing casinos has fallen more than 3% in this decade.
The loss of revenue from the casinos continued due to the increased clip from video poker and slot machines in the bars, restaurants and at truck stops (a restaurant which has a gas station and other facilities located in highways) according to the legislature’s Commission on Government Forecasting and Accountability.
In the budget year, which ends on June 30, the total tax revenue gathered from casinos was $1.4 billion, which is 3.5% more than the previous year.
According to the annual commission report, it is a matter of concerned that the new betting options added in the gambling expansion which was signed by Governor J.B. Pritzker in the month of June might take away revenues from the existing casinos. The new casinos are in Chicago, Waukegan, and southern Illinois.
According to another report, the continuous demand and competition for video games are the main factors for the slope down of the tax revenue. The downfall at the existing casinos may get the worst due to the notable demand in the competition which will soon be coming from new Illinois casinos, racinos, and the other casinos from closed by States.
The analysis from the commission was a matter of anxiety which is responded by the Sate’s casino industry and had been taking care of successfully till spring as it has been creating new licenses for last ten years.
There was a decline of 62% in the revenue of Riverboat casino. It had gone beyond the lottery to collect a tax revenue of $554 million in 2003 as compared to $540 million from lotto sales. The revenue was high in 2005, which was $699, and after that, there was a down-trending till last year which was $294 million.
The revenue from video gambling which came online in the year 2012 was more in 2017. The lottery took back its place as the states highest source of income was from gambling, and the amount of revenue earned combining 2008 and last year was $735 million, which was little more than the half of the amount the state had taken from betting.
The new gambling casinos signed by Pritzker also includes legalized sports betting, new horse track and video gambling which will help to pay for the building project of “Rebuild Illinois” of $45 billion. When the law was signed, it was calculated that from gambling $350 million will be generated in the new annual revenue.
But there are still problems. One of the studies from an outside consultant for the Illinois Gaming Board and the Chicago city limited that the law made to collect tax from casinos are so high that the building project might fail to attract a developer. Lori Lightfoot, the Mayor, will work on the plan with the leaders in Springfield to find a solution.
Churchill Downs Inc. the owner of Arlington International Racecourse and the majority share owner of Rivers Casino is in full hope to receive the license for the Waukegan Casino, said that there would be no slot machines or table games at Arlington as the revenue share committed for the purpose of horse owners is too much that the track will not be completed along with casinos.
