In his proposed $39 billion budget, J. B. Pritzker, the new governor of Illinois, includes tax revenue from sports betting—which isn’t legal in the state–to help relieve some of its pension debt of $134 billion. State Rep. Mike Zalewski, who plans to introduce sports betting legislation, said, “The Governor is really trying to rectify a budget situation that’s four years in the making, and he sees sports betting as part of that solution. He’s an incoming Democratic governor who won by a wide amount. Those in our caucus want to give him what he asks for to lead us. To have him ask for sports betting, I think we’ll be supportive of it.”
Zalewski sounded a note of caution. “He’s going to say he wants it but defer to the legislature to get it done, and it will be a huge challenge for us. I know everyone wants it and there’s no reason not to do it but, as someone who has fought this fight, it’s still going to be hard,” said Zalewski, chair of the House Revenue and Finance Committee.
Three years ago, Zalewski was unsuccessful in getting daily fantasy sports legislation passed. And in the past two years, state Rep. Bob Rita has tried without success to get a comprehensive gambling bill passed; it would have allowed sports betting, DFS, online poker and iGaming, plus up to six new casinos in the state, including one in Chicago. “Every gaming bill in this state the last 10 years has collapsed under its own weight. It’s a really hard topic because there’s so many interests trying to get the best deal they can for themselves,” Zalewski said.
For example, he explained, “If you’re a longstanding casino owner and see the state considering a model that directly affects that space, you’re going to want to have a say in it. If you’re a long-suffering racetrack owner watching the industry dry up a little bit, you’re going to want to have a stake in it. If you’re someone who invested a lot of money into an online gaming company, you’re going to want to have a say in anything that legalizes sports betting.”
Despite his DFS experience, Zaleweski believes all the varied interests can come together on sports betting. “I think sports betting is sort of a glue kind of model, as each stakeholder can benefit from it yet none of them needs it to maintain their main business model. That’s the reason I think it can happen,” he said.
Regarding online and mobile sports wagering, he noted, “I think it’s a crucial part of any modern marketplace and I think it’s got to be included in any permutation that has a realistic chance of passing because if you’re relying on people to go to a place to do anything these days, I think you’re being shortsighted as a policymaker. I think we would be remiss if we didn’t include some sort of mobile platform to fully capture the modern market.”
Zalewski added he believes professional and major leagues need to get something from the legislation, though not necessarily a percentage of handle. Sports teams in Illinois have a deeper connection to politics in Illinois than in other states, he said. “There’s a unique nexus between Illinois politics and sports where it will be incredibly difficult to tell teams we’re just going to go ahead without you. It seems unrealistic to me. I think the leagues and teams in Chicago will be difficult to navigate if you don’t at least bring them into the conversation.”
