Bill Proposed for Regulation of Sports Betting Platforms in Illinois
Illinois Keeps Pushing the Envelope with Sports Wagering Amendment
Ready for some fresh action in the Land of Lincoln? Illinois Rep. Bob Rita is at it again, proposing an amendment to the state's Sports Wagering Act that would revolutionize sports wagering in Illinois, making it the second U.S. state, after New Jersey, to allow exchange wagering.
HB 1405 is Rita's brainchild, defining exchange wagering as "the buying and selling of betting contracts at any time prior to the conclusion of an event..." Rita's bill is aiming high, putting the Illinois Gaming Board (IGB) in charge of awarding up to two licenses for exchange trade wagering.
Sound complicated? Let's break it down—exchange wagering is a form of betting where individuals bet against each other, rather than against a bookmaker. This amendment would bring groundbreaking innovation to the state's gambling scene, all thanks to Rita's forward-thinking motion.
So, what's the catch? The IGB will use recognized market surveillance technology, employed in U.S. financial markets, to keep a close eye on transactions. The technology is designed to identify suspicious wagering activities, such as problem gambling, money laundering, and other actions that could compromise the integrity of sports wagering.
Exchange wagering revenue will be taxed at 15%, the same rate as sportsbook operators in Illinois. Rita, a key player in the legalization of sports wagering in Illinois in 2019, is well-versed in the ins and outs of the industry.
Already home to 12 retail sportsbooks—three at off-track horse betting locations—and a thriving mobile wagering market, Illinois has captured the third-largest sports betting market in the U.S. behind New York and New Jersey, with over $8.7 billion in wagers through the first 11 months of 2022.
But, will Rita's amendment add to an already burdensome workload for the IGB? One thing's for sure: the IGB has its hands full with the five applications for Management Services Provider licenses in review, the review of Betfair's application for wagering through FanDuel at the United Center, and the active period for accepting applications for Illinois' three online-only licenses.
Moreover, the IGB is in the thick of it with Tekkorp Corp.'s withdrawn application, Betway's withdrawn application, Fubo Sportsbook rejection, and the review of Bally's casino application for a license to build a proposed $1.8 billion venue in downtown Chicago.
So, what's the takeaway here? With Rita's amendment and a busy IGB, it's clear that Illinois' gaming industry is showing no signs of slowing down!
Illinois' Sports Betting industry is set for a major overhaul with Rep. Bob Rita's proposed amendment, which aims to introduce exchange wagering, a form of sports betting where individuals bet against each other, resembling a line in stock trading. If passed, this amendment will make Illinois the second U.S. state to legalize exchange wagering, potentially intensifying the sports betting landscape in the state, while also increasing the IGB's workload.
