Illinois Gaming Board Chairman Schmadeke Steps Down

Charles Schmadeke, who oversaw one of the largest multiple-gaming-vertical expansions in the United States over the last six years, announced Thursday he is stepping down as chairman of the Illinois Gaming Board effective July 1.

Schmadeke made the announcement at the outset of the open session of Thursday’s scheduled IGB meeting, saying he “advised Governor [JB] Pritzker that after two terms it is time for me to call it a day.”

Schmadeke and the IGB were able to implement a majority of the pieces in a massive gaming expansion bill Pritzker signed into law in June 2019. That bill legalized sports wagering in Illinois, created six new casino licenses throughout the state — including one for downtown Chicago — and allowed for a sixth video gaming terminal (VGT) at bars and taverns where such gaming is legal.

State tax revenue in 2018 from casino gaming and VGT play totaled $757.5 million, with casinos narrowly providing more receipts. VGTs, though, accounted for 59.1% of the nearly $1.5 billion in state tax revenue in 2024 at $884.2 million, with casinos and sportsbooks combining for $611.9 million.

Six new casinos and (finally) a racino

Each key non-lottery gaming vertical has seen significant expansion in Illinois during Schmadeke’s six years as chairman. He joked that when he was first contacted about the position, “I was assured, ‘Oh it’s not going to be that much work.’ Well, that was kind of an exaggeration.

“It proved to be very challenging, not only handling the ongoing duties, but also implementing the gaming expansion of 2019, which we have made substantial but not complete progress on.”

Illinois has gone from 10 to 16 casinos during Schmadeke’s tenure, with permanent venues opening in Rockford, Williamson County, Danville, and suburban Cook County. There are temporary casinos operating in both downtown Chicago and Waukegan, with Bally’s expected to open its permanent gaming venue in the River West neighborhood of Chicago in September 2026.

The “not complete progress” is developing racinos in the state as a means of helping the flagging horse racing industry in Illinois. When the expansion bill was passed, the state’s three horse racing tracks were given the option to expand and offer casino gaming.

But it was only in mid-April that the first one opened at Fairmount Park in Collinsville near the Missouri border. Churchill Downs balked at expanding Arlington International Racecourse into a racino after long lobbying for such an option, incurring the ire of the horse racing industry. Churchill Downs eventually sold the land to the Chicago Bears after razing the property world renown for its cantilevered roof.

Hawthorne Race Course in the south Chicago suburb of Stickney has been in limbo for more than three years looking to secure $400 million in financing for its racino project.

Agility highlights sports betting growth

Sports wagering in Illinois launched days before the COVID-19 pandemic shuttered much of the nation in March 2020. The IGB showed agility that summer in implementing Pritzker’s Executive Order 2020-41, which suspended the in-person registration requirement for bettors to gain access to mobile sportsbooks.

Pritzker’s executive order was renewed repeatedly during the pandemic and into March 2021, helping mature the mobile sports betting market faster. Illinois overtook New Jersey in recent years to be the No. 2 market behind New York and currently has 17 retail sportsbooks and 10 mobile ones taking wagers.

While it does not get as much publicity as sports wagering and casino gaming, Illinois is home to the largest network of VGTs in the country. There are currently more than 48,700 active terminals throughout Illinois, an increase of more than 18,000 compared to the end of 2018. That figure is more impressive considering there are no VGTs in Chicago as they are currently banned by via city ordinance.

The terminals, whose Net Terminal Income (NTI) is split nearly equally among the state (35%), terminal operator (32.5%), and licensee (32.5%), have been lifelines for both bars and taverns across the state and local municipalities. Terminal operators and licensees split $1.97 billion in NTI in 2024, while the local municipality share of taxes totaled $152.4 million.

Schmadeke gave credit to IGB staff and his fellow board members for fostering the overall growth of gaming in the state, noting the “amazing staff the Illinois Gaming Board has from the top down,” and remarking on how board members “each month spend hours reviewing materials and preparation for these meetings, and their insights and perspectives have proven invaluable and nearly always correct.”

A word for and from ‘Mr. Administrator’

Schmadeke singled out IGB Administrator Marcus Fruchter, whom he refers to as “Mr. Administrator” during meetings, for praise over the course of his tenure. During the pandemic, the board expanded the scope of Fruchter’s duties and powers, and it has renewed that expanded role annually in subsequent years.

“Marcus is always well prepared, always responsive to our needs, and always willing to work with the board, other staff members, the gaming industry, and other interested parties,” Schmadeke said.

Fruchter was equally complimentary, saying Schmadeke “has been a great resource to me in this job and through a lot of the challenges that we and the agency and the state have faced … including gaming expansion, agency modernization, and what seems like it was a decade ago, the COVID-19 pandemic and its aftermath.

“Chip remains steadfast in his support for the IGB staff and unwavering in his commitment to gaming integrity, highest standards of ethical conduct, and to the rule of law. … I believe the IGB and the people of Illinois are certainly better off because of his tenure as board chair.”