Illinois state Rep. Robert Rita recently introduced House Bill 1405 which would allow sports betting exchanges, in which sports bettors wager against each other.
Currently sports betting exchanges only are allowed in New Jersey. The bill would require the Illinois Gaming Board to allow up to two approved exchange trade wagering licenses, expanding legalized Illinois sports betting beyond online and retail options.
According to Rita’s legislation, the sports wagering exchanges would be monitored by a “recognized market surveillance technology used in United States financial markets that is capable of identifying wagering activities indicative of problem gambling, money laundering, and other actions detrimental to the integrity of sports wagering.”
New Jersey offers licensed, regulated exchanges through Prophet and SportTrade, mobile apps that allow bettors to post prices or accept prices from other bettors. This method appeals to those bettors seeking more favorable odds than those offered by traditional sportsbooks.
Illinois ranked third in sports betting revenue in the U.S. in 2022, behind New York and New Jersey. The state posted more than $1 billion in wagers in November for the second consecutive month. Seven legal mobile sportsbooks operating in the state are FanDuel, DraftKings, PointsBet, Caesars, BetRivers, BetMGM and Barstool. The state offers a dozen retail sportsbooks with two more coming soon. Also, the state legislature may approve retail sportsbooks at pro sports venues like Wrigley Field (Chicago Cubs) and the United Center (Bulls, Blackhawks).
