Editor’s note: Starting Dec. 17, 2021, Illinois residents can legally place bets on in-state college teams. It is important to note that this can only be done in person.

You may be wondering why you are unable to place bets on Illinois or Northwestern through your mobile sports betting apps.

Even though sports betting has been legal in Illinois since June 2019, online wagering on local college football or basketball teams is not allowed.

The simple explanation is that it is a result of state law. However, it is now legal to place bets on Illinois college teams at a retail sportsbook in person, even though mobile betting is still prohibited.

The legislation that changed the legal status of sports betting in the Prairie State included a provision specifically exempting college sports.

Nonetheless, the ban is not applicable to all college sports events. In Illinois, most college sports events are accessible to mobile bettors, with the exception of a specific subset of matches that share a common characteristic.

Betting on games involving college and university teams within the state is illegal according to the law. This is not exclusive to Illinois, as other states with legalized sports betting also have similar or stricter regulations. On the other hand, some states have more lenient rules regarding sports betting.

Determining the exact revenue loss Illinois will experience as a result of the local college ban is challenging, but it seems inevitable. The main concern is whether the advantages outweigh this expense.

Illinois’ ban on mobile in-state college sports wagering

Regulation of this aspect of legal gambling in Illinois is overseen by a provision in Section 25.25.d of the Illinois code.

According to this Act, licensees are not allowed to take bets on sports events involving a college team from Illinois.

However, HB 3136 has amended the law to allow in-person betting on these teams.

This includes all college and university teams in Illinois, not limited to just the University of Illinois and Northwestern University. While these two may be the main focus for in-state betting because of their membership in the Big Ten Conference, all Illinois teams are part of the betting options.

• Bradley
• Chicago State
• DePaul
• Eastern Illinois
• Illinois State
• Loyola
• Northern Illinois
• Southern Illinois
• Southern Illinois Edwardsville (SIUE)
• The University of Illinois at Chicago
• Western Illinois

Certain smaller Illinois schools with athletic programs participate in the NAIA and lower NCAA levels. Nevertheless, only Division 1 events are permitted for betting at authorized sportsbooks.

The ban does not apply to sports events held within the state, as long as they do not feature a team from that state. A prime example of this exception is the Big Ten basketball tournaments in Chicago.

For example, Illinois-licensed mobile sportsbooks may take bets on college basketball games like Indiana University vs. University of Iowa in a tournament. But betting on games with the Fighting Illini and Wildcats would not be allowed.

The sports betting law in Illinois is more strict than in neighboring areas, but not as strict as in other jurisdictions. This contrast is highlighted by the laws in nearby Indiana and Iowa.

College betting bans in other states

In Iowa, legal sportsbooks have the freedom to accept bets on any team without restrictions, with the only limitation being on prop bets.

Prop betting on individual athletes, such as predicting the performance of an Iowa Hawkeyes basketball player in a game, is not allowed in Iowa sportsbooks. This rule applies regardless of the athlete’s affiliation with any institution.

Indiana applies the same rules for betting on college sports as they do for other sports. Despite sportsbooks in Indiana being allowed to offer betting markets for college sports events, it doesn’t guarantee that they will do so.

States have varying methods for regulating legal gambling, with some like Oregon prohibiting all betting on college sports, while others like Indiana, Pennsylvania, and West Virginia have no specific exceptions for college sports.

New Jersey, New York, Virginia, and Washington, DC have taken a comparable approach to Illinois by implementing a ban on betting on college teams within their borders. This ban applies to all events taking place in DC and NJ, regardless of the teams participating.

The reason states are willing to sacrifice potential revenue from college sports is due to the effectiveness of lobbying efforts.

Why do states limit wagering on college sports?

Legislators and officials from the college sports industry advocate for these constraints, pushing two main arguments:

• The increasing prevalence of gambling on college sports events threatens the integrity of these competitions.
• Preventing college sports from entering legal markets protects student-athletes from the harmful effects of gambling.

It is argued that athletes in these events are at a higher risk of being involved in match-fixing due to their lower pay compared to professional athletes. Additionally, limiting betting on these events may help decrease the likelihood of college athletes facing harassment from disgruntled bettors in person or on social media.

However, there is no concrete evidence suggesting that legalized betting on college sports leads to integrity issues or increased negative interactions between athletes and bettors. In fact, these regulations could potentially have a positive impact.

Separating fact from myth on legal college sports betting

Legal books in Illinois adhere to the law, but illegal bookmakers and foreign websites are willing to take bets on in-state college teams, keeping betting activity on these teams in the unregulated “black market.”

People who engage in illegal betting are often more willing to try to influence the results of events. Law enforcement recently uncovered a case of attempted match-fixing in college sports, which was connected to an illegal gambling ring.

In this situation, the adage “Sunshine is the best disinfectant” applies. College athletes should not be deprived of the same regulatory protections afforded to athletes in other leagues, as regulation promotes transparency and integrity.

College sports leaders can easily address concerns about athletes being vulnerable to match-fixing by increasing their pay. They can allocate a larger portion of the revenue generated by these athletes to them, ensuring fair compensation and reducing the risk of corruption.

Illinois’ lost revenue due to this ban

It is difficult to determine the exact revenue loss, as well as accurately estimate the number of people in Illinois who would bet on in-state teams and how much they would wager if given the opportunity. However, the illegal market is not the only option for these activities.

Illinois residents have the option to legally bet on their state’s college teams by traveling to Indiana or Iowa, diverting their gambling tax dollars to those states. With Illinois being home to two Big Ten institutions, this could result in the regulated betting market in Illinois missing out on millions of dollars in annual handle. This loss in revenue could ultimately lead to a significant decrease in tax revenue over time, amounting to millions of dollars.

Imagine if Illinois or Northwestern were to compete in a Big Ten men’s basketball tournament championship game or reach the Final Four. The potential financial consequences of such an event could be significant. However, the greatest harm may be felt in a growing market. If bettors are unable to access the legal betting options they desire, they may continue to engage in illegal betting practices, leading to a negative impact on the overall betting industry.

Illinois law isn’t the worst but it could be better

In summary, Illinois gamblers can celebrate the fact that there is not a complete ban on college sports betting in the state. This agreement is just one of several that have paved the way for the establishment of legal sports betting establishments in Illinois.

At the same time, the rationale for this provision is questionable, as it could lead to gamblers staying in the unregulated market or traveling out of state to gamble. There is also concern that it may increase the risk of athletes being targeted for match-fixing. Essentially, this seems to be a solution looking for a problem.

The state may repeal this portion of the law in the future.