In a surprise move on the last day of this legislative session, lawmakers in Illinois essentially legalized sports betting in the state. With a vote of 46-10, the bill passed easily and will now head to Governor J.B. Pritzker’s desk, where he has indicated he will sign as soon as possible. The statehouse had a busy day last Sunday. Many observers saw a “failure to launch” written all over this bill and many others. However, Illinois lawmakers surprised everyone by not only passing a legal sports gambling bill but by also expanding all gambling in the state as well as legalizing marijuana. Talk about a busy day.
It has been well documented that legal sports gambling has always been a very popular issue in Illinois for years now, and everyone was on board to make it happen. The Governor even included legal sports gambling revenue in a proposed budget for 2020. However, as any Illinois resident can tell you, consensus between lawmakers in the statehouse doesn’t mean anything will get done as special interests often take over. Legal sports betting looked to be destined to only more delays as, just a week ago, several amendments were shot down as soon as they were introduced. Granted, these were bad bills and amendments with plenty of giveaways to those pesky special interest groups. But then, lo and behold, the statehouse actually pulled it together and got the work done in the 11th hour. Congrats sports bettors of Illinois, let’s see what you’ve won.
Up and Running Soon
Once Gov. Pritzker has signed the bill, things are expected to move very quickly, with some even predicting a July 1 start. There will be plenty of options for placing sports wagers in the state of Illinois. Firstly, you will have brick and mortar sportsbooks allowed to operate in casinos, racetracks, and sports stadiums across the state. Not only that, but the state’s lottery is also involved and will be able to accept wagers all across the state. Secondly, online betting will also be available. However, in-person sign-up with the affiliated sportsbook will be required in the first 18 months of the legislation.
Take That DFS
Illinois lawmakers and the Daily Fantasy Sites such as FanDuel and DraftKings have had a bad relationship over the years. It all began when the DFS sites began operating in the state. It didn’t take long for the state to notice and rule DFS sports betting and, therefore, illegal. However, FanDuel and DraftKings did not stop operating in Illinois and, as you can imagine, this did not sit well with the statehouse. Of course, this was a few years ago, and much has changed. With the Supreme Court making legal sports betting a state’s decision, both FanDuel and DraftKings have become major industry players beyond DFS with sportsbooks, online and on land, operating legally in such states as Pennsylvania and New Jersey.
Now, in Illinois, it’s payback time, as this sports betting bill has a “penalty box” for “bad actors” such as FanDuel and DraftKings. An 18-month waiting period is included in the bill to keep FanDuel and DraftKings out for the time being, allowing other sportsbooks a nice head start. This move has been widely criticized by many; however, it’s hard to see a downside from a sports bettor’s perspective. After all, some operators would not have even bothered entering the state if FanDuel and DraftKings their competition from Day One. This move allows others to get a leg up until those two sites come on board. Both sites are sure to still enter the market after the 18 months because Illinois, especially Chicago, is just too large a market to ignore. The more options sports bettors have, the better and this move guarantees Illinois sports bettors just that.
Some Drawbacks
The fees and taxes for operators entering Illinois to offer sports betting are on the high side. However, just like the “penalty box” for FanDuel and DraftKings, this really won’t have an effect on players, just the operators. There will be plenty of competition in this huge market to be sure everything is on the up and up. However, there were two giveaways that cause concern.
The first is no in-state college games will be available for wagering. This was a consideration for those worried about the corruption gambling supposedly brings. The second is not as obvious but just as important as it requires operators to use league data for their in-play offerings. There are no integrity fees, but this is the next best thing for the leagues. It is a cash grab, and Illinois has done a disservice to other states, with smaller markets, looking to legalize sports betting. After all, there is no reason to use league data over another company’s data. Not allowing for that competition could directly affect in-game lines, totals, and odds.
