Five Potential Problems With The Latest Illinois Sports Betting Regulations

As Illinois progresses towards launching its legal sportsbooks, it has issued a fresh batch of rules for regulated sports betting. While some of these regulations align with industry standards, a few are causing surprise.

Though Indiana is seen as a frontrunner in sports betting, the regulations in Illinois have peculiarities that are causing concern among industry insiders about the operation and success of sportsbooks in Illinois.

Five dubious aspects of the new IL sports betting rules

The new regulations for legal sports betting in Illinois encompass various aspects of the industry through these tenets, which extend from bet exclusion requests to waiting periods.

Although Illinois has a higher population than Indiana, these rules may restrict the extent of sports betting in the state. This situation might not be unfavorable for Indiana bookies, but it’s not the same case for bettors in Illinois.

Here’s an examination of some of the more unusual aspects of sports betting in Illinois.

The ongoing prohibition in Illinois on betting involving college teams within the state.

Illinois sportsbooks are prohibited from posting lines on games that involve college athletes or teams based in Illinois. This implies that betting on Big Ten teams like Northwestern or Illinois is not possible. The same rule applies to Bradley and several other smaller schools within the state.

One of the major benefits Illinois offers Indiana is the absence of specific betting regulations in the Hoosier State. People from Illinois can freely cross the state border and place wagers on any college athletes or teams.

The requirement for in-person registration for online books, which is greatly feared, still exists.

Similar to Iowa, Illinois also mandates that anyone wishing to gamble via online sportsbooks must complete their registration in person. This could potentially hinder the expansion of sports betting significantly, as it has in Iowa.

However, Illinois has a unique rule regarding this. The requirement will remain in place until the first “standalone” online sportsbook (not a retail book with an online component) is approved. This is expected to occur 420 days later. More details on this will be provided shortly.

Operators cannot obtain approval until 18 months post the launch of the retail books. As a result, the actual duration that Illinois residents and visitors may have to deal with this obstacle could potentially extend beyond 18 months. It is highly probable that it could take two or three years.

Meanwhile, people from Illinois can freely cross the border and carry out all their online betting activities without needing to visit a physical operator. This is yet another victory for Indiana.

Local casinos receive a 420-day head start.

The Illinois Gaming Bureau is set to authorize current in-state gambling operators to obtain sports betting licenses. These sanctioned license holders will then have the ability to provide retail wagering and in-person registration for online betting. After these services are operational, a 420-day countdown will commence and run continuously.

Illinois will award three licenses for online-only operations only after 420 days have passed.

Bids for sports betting in Illinois will stay confidential.

The application process for the initial three licenses will be entirely private. Applicants are given a four-month window to submit their application accompanied by a blind bid for one of these licenses.

In contrast to other states that publicly display the applications and their appraisal process, this process will not offer such transparency. The documents will remain sealed even if a Freedom of Information Act (FOIA) request is made, until the application period has concluded.

Transparency is needed in Illinois on this issue. Without public scrutiny of the application process, the criteria used in the evaluation process remain unclear.

This is particularly accurate considering that only three operators will be involved in the initial launch. The last item on the list provides an opportunity for operators to manipulate the system to their advantage in a different manner.

Operators have the ability to request the IGB to prohibit bets on specific events.

Sports leagues and teams in Illinois have the ability to request the bureau to prohibit betting on specific contests or aspects of contests. For instance, MLB may ask the IGB to discontinue betting on spring training games. This practice is prevalent in numerous states where sports betting is regulated.

Sportsbook operators are also granted this privilege in Illinois. However, it could potentially be used for unscrupulous purposes.

For instance, consider a scenario where a particular sportsbook is thriving by taking bets on Chicago Sky games. Another operator, who isn’t experiencing the same success, might request the IGB to prohibit betting on WNBA games due to this.

The IGB would not be obligated to comply with the request. However, the existence of a mechanism that could be used in this manner is an issue.

These new regulations in Illinois pose some queries for those in the state and make the regulatory environment in Indiana seem better. This current situation could potentially benefit sportsbooks in Indiana if adjustments are made in time.