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A close look at the gambling laws in Illinois and how they may change

Last updated on February 11th, 2022 at 10:25 am

In spite of recent developments, the Illinois gambling market is still in a period of infancy compared to many nations in the developed world. The gambling outlook is looking increasingly promising but there’s still a long road ahead for lawmakers.

The Professional and Amateur Sports Protection Act (PASPA) was passed into Federal Law in 1992 which outlawed sports betting in all but four states: Oregon, Delaware, Nevada and Montana – who each had existing specific legislation in place. The act, which was hastily brought in, as a response to the recent legalization of casinos in many states, hobbled any chance of a profitable sports betting industry to develop for much of the country.

Since PASPA was deemed unconstitutional in 2018 and was subsequently repealed, many states’ gambling laws have been in a state of transition. In a six to three split decision, the Supreme Court ruled that PASPA was in contravention of the Tenth Amendment, that prohibits the forcing of states to implement federal laws – sometimes referred to as the ‘anti-commandeering doctrine’.

Following this finding, Illinois passed the Gaming Expansion Bill in 2019. The bill included the Sports Wagering Act, which legalized sports betting, authorized six new casino licenses – adding Chicago to one of those Casino locations – and expanded video game betting terminal activity in the state.

Online sports betting is now legal in the land of Lincoln. Since April 4, 2021, bettors must register to participate, in person at one of the retail casinos in the state. Once this is completed, fans of the Chicago Bulls can simply search for the current NBA betting odds and back their team.

Nevertheless, the process is still not without its quirks. During lawmakers’ recent fall session, betting on intercollegiate sports was made legal, where previously it was prohibited. Strangely, an exception to this ruling is that no bets can be made on any teams from in-state – in order to this, you must cross state lines, into Indiana, for example. In-game and betting on an individual’s performance also remain outlawed.

The good news is that these restrictions are set to end in March 2022 when the amendments to House Bill 3136 are enacted. From that date you will be able to sign up for mobile betting online, so long as you are located within state lines and you’ll then be able to place wagers on results of the Fighting Illini and the like.

The agency responsible for the sports betting approval process is the Illinois Gaming Board and although they have faced criticism for their laboured decision making, they insist progress has been methodical and pragmatic, and that these things take time if they are to be done correctly. These comments came in response to neighbouring Indiana’s highly profitable sportsbooks compared to Illinois’ comparatively diminutive figures in 2019.

These numbers have since significantly improved but are still lower than what was predicted when the Gaming Expansion Bill was passed, two years ago.

The future of gambling laws in Illinois

Several proposals for the first Chicago casino resort are now on the table and under review. The successful applicant is likely to be chosen in the first quarter of 2022. Currently, there are a handful of casinos operating outside the city. Among the prospective organizations are the Hard Rock brand.

The Seminole owned firm recently opened a resort over the border in Gary, Indiana, followed by having plans accepted for a Rockford, Illinois, center. Upon receiving the green light, Hard Rock opened temporary casino premises in Rockford – which is operating today – until the 2023 megastructure is completed.

Illinois is establishing itself as a major player in the gaming industry with some metrics placing them behind only New Jersey and Nevada. Advocates suggest that the revenue raised from these burgeoning markets can be invested into state infrastructure – also claiming that streamlining these services only redirects capital to regulated companies that were once being spent at offshore websites.

An area of untapped economic potential is the world of iGaming – the process of wagering online – more specifically in the domain of traditional casino games. New Jersey has had concrete iGaming laws in place since 2013 and has an obvious head start over the Prairie State. Expanding the current framework to include these popular games would equate to a substantial prospective revenue source.

Centralizing all gambling activities and being able to monitor them is also a good way to ensure people are using the services responsibly and assistance can be readily allocated to those that need it. Somewhat counterintuitively, online activities, especially when properly registered, are less anonymous than gaming at one of the state’s video terminals or even at a brick and mortar casino.

The last three years have seen some dramatic developments for many states’ gambling legislation and Illinois seems to have established itself as a major player. While it’s important for new gaming blueprints to be well thought out, it’s equally important the state doesn’t drag its heels and miss out on essential revenue.

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