The Good, The Bad And The Ugly: Illinois’ Newest Sports Betting Rules

Written By Derek Helling on January 30, 2020Last Updated on February 4, 2020
Sports Betting Rules Create Several Problems For Illinois' Future

Illinois is working to make activities gambling legitimate. However, the most recent sports gambling regulations cast doubt on how well that method is progressing.

In the 66 pages of draft regulations, there is good, bad, and ugly. Unfortunately for Illinoisans, there is more of the latter two categories than the first.

What & rsquo, in the most recent revision to the sports betting regulations, is good?

Among the laws, there are a few standouts. In the future, Illinois may provide residents and visitors with a genuine online sports wagering knowledge.

The state intends to permit casinos to provide online betting as well as license & ldquo, standalone & rndquo( operators without a brick-and-mortar component ) online sportsbooks. The tax rate for sportsbooks is less than half of Pennsylvania & rsquo, at 15 %, despite being more than twice as high in neighboring Iowa.

The fact that the laws still permit sports venues to run bookmakers is another strength of the regulations. As a result, more users are available, making it easier for fans to obtain events.

What is nice is in the attention of the beholder, just like with most other things. Regulations, it & rsquo, must be compared to the laws in other states in order to determine the value of Illinois & requo.

That contrast does not compare favorably to the Prairie State. There are a number of aspects of the current regulations that are simply unacceptable.

Prohibited wagers and the requirement for in-person membership

Potential Illinois casinos are still prohibited by law from accepting any bets on in-state college athletes or teams. That prohibits placing bets on, among other places, Bradley, Illinois, or Northwestern.

Because those are the teams that Illinois bettors will be most interested in, That & rsquo is bad for the state. They are more likely to use an offshore guide or cross the border to Indiana or Iowa rather than giving up on placing those bets.

That won’t be the only factor putting Illinois casinos at a disadvantage compared to those in nearby states. The dreaded in-person membership requirement has been maintained in Illinois.

This means that bettors will need to attend a physical location in order to complete their registrations before opening transactions with online sportsbooks. That & rsquo is problematic because, once again, Indiana legal professionals and offshore bookmakers are exempt from these limitations.

That rule is in place in Iowa, but it ends on January 1, 2021. It might be more suitable for Illinois residents who live close to that frontier to traverse the Mississippi River and place their wagers there.

That brings us to the unpleasant aspects of Illinois & rsquo, proposals. They don’t really make a lot of sense; they go beyond unique.

Minimal operators, a waiting time, and operator damage

The second way Illinois deviates from accepted practice is that it will only permit bookmakers with brick-and-mortar components for the first year and beyond.

Additionally, the initial registration applications’ bidding process may be entirely sealed. In that process, hardly yet requests for the Freedom of Information Act will be granted.

The Illinois Gaming Board won’t be able to challenge licenses after those first license awards. For 420 days, to & ldquo, standalone & rdqua, online sportsbook operators. That is not only exclusive to Illinois, but it also makes the in-person registration need more difficult.

When the first online-only controller is approved, the in-person registration need expires. That implies that the actual duration of that condition might be two or three years.

However, there may be one principle that is really more repulsive than all of these.

The unquestionably ugly concept and potential outcomes

Many states permit professional sports leagues to ask that casinos not accept wagers on specific occasions. MLB, for instance, might ask for no bets on spring training activities.

However, Illinois & rsquo rules grant that privilege to sportsbook operators. No other position that permits legal sports gambling currently has such a regulation.

Consider a local sportsbook that is doing well when placing bets on Chicago Red Stars games to show why this is difficult. The IGB may be asked to halt action on those matches by one or more of that operator & rsquo’s rivals.

While the IGB would not be required to give that request, there does not appear to be a benefit to having this rule in place. Nonetheless, the drawback of it is clear.

The state’s most significant drawback with its most recent sports betting regulations is that they will, at least temporarily, risk Illinois sportsbooks in comparison to legal options and improper markets in nearby states. I’m hoping the IGB will take care of these problems before the laws become last.

Helling Derek Avatar
authored by

Helling Derek

Helling Derek is a lead writer for PlayUSA and the manager of BetHer. He is a 2013 graduate of the University of Iowa and covers the intersections of sports with business and the law.

View all posts by Helling Derek