Bill Would Allow Online Betting On In-State Teams In Illinois

Last week in Springfield, new legislation was introduced with the aim to alter an existing law that currently bans online betting on Illinois college teams through state sportsbooks.

On April 20, Representative Jonathan Carroll proposed HB4041 in the house. This bill, if passed, would permit an Illinois online sportsbook to take a bet on a sports event involving an Illinois collegiate team, provided the bet is a tier 1 wager and not based on the performance of an individual athlete.

Betting on Illinois collegiate teams is currently legal in the Prairie State, but only if it’s done in person at a retail sportsbook.

Around 94% of sports bets in Illinois are made online, which poses a significant limitation for those wishing to bet on in-state teams. This became evident when both the University of Illinois and Northwestern University qualified for the NCAA men’s basketball tournament. Illinois sports bettors were compelled to use a physical sportsbook to place bets on the Wildcats and Fighting Illini.

Not much time for bill to gain traction

HB4041 has currently only been filed with the house clerk. Given that the existing session of the Illinois General Assembly concludes on May 31, the bill does not have much time to gather momentum.

However, another sports betting bill in Illinois is steadily advancing towards becoming law.

Senator Bill Cunningham’s SB 1508 bill, filed in early April, received unanimous support from the Illinois Senate, with a 54-0 vote. The bill, if passed, would mandate Illinois sportsbooks to issue hourly pop-up notifications to bettors, updating them on the amount they have wagered.

That pop-up would incorporate hyperlinks and phone numbers linked to Illinois problem gambling resource information, thereby simplifying the process for individuals battling problem gambling to seek assistance.

Cunningham stated, when he filed the bill:

Illinois has spearheaded the regulation of sports betting, and it is imperative that we also tackle the potential damages linked to gambling addiction.

We can assist individuals who may be grappling with problem gambling by mandating sports betting apps to show a pop-up message providing resources for gambling addiction help.

Two other gambling bills on their way to the House

Additionally, the Senate has passed two other gambling bills.

• Bill 323 alters the renewal fee that Illinois sportsbook operators must pay for their licenses. The Illinois Gaming Board’s annual fee of $150,000 would be modified to a $50,000 fee every four years.
• Bill 1462 revises the criteria for individuals with criminal records applying for an occupational license. The IGB would be obligated to review the specifics of the applicant’s criminal history, including factors such as the time elapsed since conviction, the number of convictions, and the seriousness of the offenses.

In order for all three bills to be legalized, they must pass the House and receive Governor J.B. Pritzker’s signature.

Carroll also sponsored bill aiming to legalize Illinois online casinos

Carroll is also accountable for HB2320, which could legalize online casinos in Illinois.

However, legislative hurdles have been encountered by that bill, a related House bill (HB2239) filed by Rep. Edgar Gonzalez, Jr., and Senate bill SB1656 introduced by State Senator Cristina Castro. As a result, it appears improbable that online casinos in Illinois will be legalized this year.

HB2239 was transferred from the House Gaming Committee to the House Rules Committee. On the same day, SB1656 was shifted from the Senate Executive Committee to the Senate Assignments Committee.

Since being sent there on Feb. 14, HB2320 has stayed with the Rules Committee.

Bill to authorize exchange wagering also stalled

Another bill that would permit exchange betting in Illinois has also hit a roadblock.

HB 1405, a bill introduced by Bob Rita, a state representative who played a key role in legalizing Illinois sportsbooks, has been with the Rules Committee since it was forwarded there on March 10.

The bill, which if approved would permit two licenses for exchange wagering and impose a 15% tax on them, is now unlikely to be passed and signed into law this year.

Exchange betting is also known as peer-to-peer betting.

Simply put, it’s a wager between two people. This transaction would establish a lawful marketplace where gamblers could propose their own wagers, hoping to draw the attention of another individual.

Users establish their own terms and odds. The exchange charges a modest fee comparable to the vig that an Illinois online sportsbook would take.

Exchange wagering is currently only permitted in New Jersey. Both Prophet and Sporttrade offer exchange betting services.

The idea hasn’t yet taken hold in the United States due to the Wire Act, which forbids gambling across state borders. This constrains the scale of betting pools, as exchange wagering isn’t as popular as traditional sports betting.

Illinois sports betting is big business

The Illinois Gaming Board’s recent figures reveal that Illinois generated a handle of $875.4 million in February. This places it second in the United States, trailing only New York, which had a handle of $1.47 billion. Illinois outperformed New Jersey ($847.4 million), Nevada ($659.4 million), and Ohio ($639.8 million) in the same month.

Before February, Illinois had experienced a four-month run with over $1 billion in handle each month. This run positioned the Land of Lincoln as the fourth state to record four straight months of billion-dollar handle, following New York, New Jersey, and Nevada.

In February, Illinois officially exceeded $20 billion in total sports betting handle, making it the third highest in the U.S., trailing only New Jersey and Nevada.