The Governor of Illinois, JB Pritzker, is moving forward with a proposal to consolidate the state’s two gambling regulatory bodies into one executive department. This change aims to remove public board meetings that have historically been a part of gaming oversight in the state.
The initiative, outlined in the budget for fiscal year 2027, would be enacted on July 1, pending approval by the Illinois General Assembly.
With this plan, both the Illinois Gaming Board and the Illinois Racing Board would cease to exist. Their duties would be absorbed by a newly formed Department of Gaming Regulation and Enforcement, functioning within the executive branch.
This department would manage licensing, enforcement, tax collection, and regulatory oversight of casinos, sports betting, video gaming, horse racing, and off-track wagering.
At present, both boards are composed of members appointed by the governor, who meet publicly to deliberate and vote on matters such as licensing, operator suitability, and disciplinary issues. These responsibilities would transition to administrative decision-making in the new department, eliminating public votes and regular public meetings.
“The strategy to merge the Illinois Racing Board and the Illinois Gaming Board in the Governor’s budget proposal is intended to enhance efficiency and improve regulation of an increasingly dynamic gaming market,” noted a spokesperson for Pritzker.
“Presently, oversight of closely related gaming activities occurs in two separate boards, which may lead to decreased accountability and transparency. Consolidating these boards into one cohesive structure will enhance efficiency, bolster accountability, and ultimately provide better service to the public.”
Access for the Public vs. Administrative Decision-Making
The elimination of open meetings has garnered attention from stakeholders who believe these sessions are vital for oversight.
Public meetings have historically allowed industry professionals, journalists, and community members to observe discussions regarding licensing and enforcement actions. Under the new proposal, decisions would be made administratively, bypassing public debate and voting.
The Governor’s office reassured that records would remain available to the public.
“All information currently accessible through Illinois Gaming Board processes will continue to be made available to the public, including licensing actions, disciplinary matters, disclosure statements, and enforcement activities,” according to the governor’s office.
The proposal also suggests that lawmakers would retain oversight through legislative reporting requirements, budgetary and topical hearings, and Senate confirmation of departmental leadership.
State Senator Bill Cunningham remarked that consolidation could help alleviate delays but emphasized the necessity of oversight.
“Historically, one of the criticisms directed at both the racing board and gaming board has been their sluggish pace,” Cunningham stated. “However, this slow approach allows for comprehensive vetting. There is likely a balanced approach between having a board that unnecessarily hinders decisions and one that lacks transparency.”
Growth in Market under Regulatory Scrutiny
This proposal emerges as Illinois manages a vast and intricate gambling market that expanded significantly following legislation in 2019 which legalized sports betting, added six new casinos, and increased the number of video gaming terminals across the state.
The Gaming Board supervises 16 standalone casinos, oversees over 49,000 slot machines outside of casinos, and manages a sports betting market that is among the largest in the United States.
Last year, state revenues from gambling totaled $871 million from video gaming terminals, $186 million from casinos, $380 million from sports betting, and $7 million from horse racing.
Pritzker’s budget proposal also suggests adjustments to table game taxes at 15 of the state’s 16 casinos, which is projected to bring in an additional $120 million in revenue. However, Bally’s Chicago casino would not be affected due to a different tax structure.
This consolidation plan follows critiques of regulatory performance during Pritzker’s administration.
Reporting from the Chicago Sun-Times highlighted instances where entities with suspected organized crime links were associated with gaming operations, such as waste management at casino construction sites. Similar apprehensions have been expressed regarding the access to gaming locations for individuals with such connections.
The Gaming Board has also faced scrutiny concerning its licensing decisions and internal protocols, including cases where reversals were not publicly justified.
Pritzker formerly owned a stake in the Grand Victoria Casino, which he later divested. Trusts connected to him also held interests in casinos located in Indiana and the Niagara Falls area.
Previously, public board meetings have acted as platforms for assessing applicants and collecting feedback from community members and industry stakeholders. The frequency of these meetings has dwindled in recent years, with 10 meetings in 2019, eight in 2020, 13 in 2021, and eight annually from 2022 to 2024, followed by just seven meetings last year.
No legislation to execute the restructuring has been introduced yet. Lawmakers will need to decide on the governance and oversight frameworks for the new department.
Campaign finance records indicate that the top two legislative leaders have received over $500,000 since 2019 from Accel Entertainment, a company involved in video gaming. One of the firm’s lobbying subsidiaries is headed by attorney Michael Kasper, a well-known figure in Illinois politics.
The next public meeting of the Gaming Board is slated for April 23, as conversations continue regarding the potential changes in gambling oversight in the state.