Do Illinois Casinos Have to Be on Water in 2024?

While Illinois formerly mandated that riverboat casinos cruise along waterways, the law was amended in 1999 to allow them to permanently dock. So today, Illinois casinos no longer have to actually be on and moving around bodies of water.

However, all 10 of the state‘s existing casinos continue to be located on waterways like the Des Plaines River and Illinois River. Let‘s delve into the history and regulations around Illinois gambling venues as well as key contrasts with other states.

The Background: A Brief History of Illinois Riverboat Casino Laws

Illinois legalized riverboat casinos back in 1990 under the Riverboat Gambling Act. This original law required casino vessels to continually cruise along water routes while gaming activities took place on board.

In 1999, the regulations were updated to authorize dockside gambling. This critical change meant riverboats no longer had to move around in order to operate their casinos.

Today, over 20 years since revising the rules, Illinois‘ 10 casinos still remain in their waterway locations. This includes:

• 4 casinos in Chicagoland
• 5 casinos along the Illinois River
• 1 casino on the Des Plaines River

While gambling on designated riverboats and horse racing tracks is legal in the state, most other forms of betting – including land-based options – continue to be prohibited under Illinois statutes.

Why Initially Require Motion on the Water? Diving Into the Original Rationale

Requiring casinos to float along waterways aimed to limit their potential geographical and social impacts if allowed to crop up on land across communities. Riverboat locations also strategically directed profits toward certain economically developing zones while attracting tourist dollars from inside and outside the state of Illinois.

In the 1990s, estimates suggested each new riverboat could bring a local economy approximately $30 to $50 million per year and 1,000 related jobs. Compared to brick-and-mortar casinos, the riverboat model was viewed as a way to stimulate growth in designated areas that truly needed investment.

Over the past 30+ years since first legalizing floating casinos, Illinois‘ annual casino gaming revenue has steadily increased year-over-year:

So while motion is no longer required, riverboat casinos have clearly boosted state tourism dollars and jobs over time as initially hoped.

Contrast With Other States: Indiana as an Example

Indiana provides an illustrative example for comparing states‘ evolving casino regulations on waterways. Like Illinois originally did, Indiana law once mandated riverboat casinos be self-powered vessels able to move along water routes.

The rationale? Bringing economic activity to certain pockets of Indiana while also luring out-of-state gamblers. Anyone from Ohio, Kentucky, or Illinois could make an exciting gambling getaway by driving to one of Indiana‘s floating casinos.

However, regulations have pivoted with the times. In 2002, Indiana updated legal code to allow its 10 riverboat casinos to permanently moor. Then, in 2021, Indiana permitted a casino company to relocate their Lake Michigan license inland. This marked the first Hoosier State casino to shift entirely off the water.

Easing restrictions reflects recognition that confining gaming venues to waterways can limit growth, and land opportunities may now better meet communities‘ needs. Still, for the most part, Indiana‘s casinos remain anchored to the Ohio River and Lake Michigan even as laws have relaxed.

When Water and Gambling Intersect: The Unique Story of California‘s Floating Casinos

Jumping over to the West Coast, California‘s past offers an eccentric historical case study on once attempting to merge water and casino gambling along its shores.

During America‘s Prohibition era in the 1920s/30s as liquor was banned, crafty businessmen in Southern California bought large vessels and converted them into opulent floating casinos. Docked in waters just outside the legal jurisdiction to operate bars and card games, the "gambling ships" aimed to become resort destinations for those seeking drinking and gambling entertainment.

By 1937, over a dozen floating casinos lined California‘s coast from San Diego to Santa Monica, essentially unregulated and evading state power. However, the offshore industry attracted organized crime and corruption. After years of scandals, the state intervened in 1939 to shut down all "cruises to nowhere" for good.

While creative in exploiting jurisdictional loopholes at the time, ultimately the inability to control narcotics and crime on water spelled the end to California‘s experimental gambling ships. This bit of history illustrates the double-edged sword of trying to permit casino activities far from land.

Indian Casino Regulations: How Tribal Gaming Operates Differently

Native American tribal casinos constitute a separate sphere from commercial operations like Illinois‘ riverboats. Gambling on sovereign reservation lands is governed distinctly as a matter of federal law.

The Indian Gaming Regulatory Act of 1988 established different gaming classes, affirming tribes‘ exclusive rights over "Class I" traditional activities like ceremonial dances. Bingo, non-banked card games, and related offerings are designated "Class II" and also federally entrusted to direct indigenous regulation.

Meanwhile, "Class III" covers standard Las Vegas-style casino games. Tribes can run these contingent on negotiating an agreement with their state government addressing aspects like revenue sharing and local impact mitigation.

As sovereign powers, deals between states and tribes vary tremendously. While commercial Illinois casinos pay a "wagering tax," Native American gaming venues each have individual compacts determining fees. Some tribes also distribute casino profits to members through per capita direct payments which qualify as taxable income.

Foxwoods Resort Casino, owned by the Mashantucket Pequot Tribal Nation in Connecticut, counts as the largest Indian gaming facility in the U.S. raking in billions of dollars annually. Their empire dwarfs smaller counterparts like Illinois‘ Grand Victoria Casino run by the Potawatomi on trust land in Elgin.

Inside the Casino: Design, Security, Payback Percentages

Beyond gaming regulations, running a casino‘s day-to-day operations also involves intriguing intricacies. For one example concerning interior design psychology: have you noticed the distinct lack of windows inside casinos? This aims to make losing track of time easier so patrons play longer. Casinos also notably avoid wall clocks.

Surveillance demands likewise impact operations. Given gaming‘s cash focus and fraud risks, strict security pervades the industry. Facilities closely monitor gaming floors and tables through live feeds and taping, angering some guests who dislike being recorded. State regulators also audit equipment for fairness.

When it comes to slot machines specifically, their payback returns average 75% to 98% meaning the house ultimately wins over time. Gaming providers are still incentivized offering better payout ratios given the competition, as casinos want to attract customers through perception of good odds and big jackpots.

Ongoing debates continue around banning smoking and cell phone usage near betting areas over concerns around cheating, though consensus remains elusive thus far. One unique casino policy – never offering $50 bills – persists due to associated superstitions leaving the denomination oddly deemed unlucky.

In Conclusion

To wrap up, while Illinois no longer mandates riverboat casinos actually cruise, all current gaming venues still remain tethered to local waterways following decades of tradition. Yet regulations continue evolving in different directions elsewhere, as Indiana recently permitted its first casino relocation off Lake Michigan onto dry land. One certainty persists across the country – gaming will continue grappling with technology disruptions and regulatory changes for years to come!

What interesting experiences or insights around casinos do you have? Please share in the comments below!