Now that both hearings on expanded gambling, including sports betting, have concluded in Illinois, their organizer, state Rep. Bob Rita, said he does not expect legislators to take up the subjects until the next session begins in January. Rita said lawmakers are reviewing several gambling bills, but no single one covers all the relevant issues and none have yet had a full vote.
Regarding the hearings, Rita said, “I feel we got a bunch of good information and now we take that info and use that in crafting a path. Did we get anything concrete out of the hearing? No. But one of the goals is to do this in an open way, rather than sitting in a back room and negotiating.”
Legislators are debating whether to include sports betting in a larger gaming bill or consider it in a separate measure. Rita said historically, comprehensive gaming legislation has not been successful. He noted the video gaming bill passed on its own in 2012, more than three years after it was first introduced.
Among the issues legislators are discussing regarding sports betting is the tax rate on gross revenue, which has not been included in any of the proposed bills. Experts note the higher the tax rate, the more challenging it is for sportsbooks to be successful. Rita said the tax rate is “very important” added he’s exploring other states’ sports betting tax rates.
Another issue the role of mobile/internet wagering. In New Jersey in September, $104.8 million of the total $184 million handle came from online bets. At one of Rita’s hearings, GeoComply President Lindsey Slater discussed geolocating, which assures online bettors are located within a state’s borders.
Major sports leagues’ integrity fee also is a significant issue. State Rep. Lou Lang said the sports betting bill he plans to sponsor would include the fee but added he wants something in return. Rita stated, “The pro leagues started out with the integrity fee, but are they looking for integrity itself or are they just looking for a way to generate more money? So, I think I still need to get more information.” So far no state that has legalized sports betting has included any royalty, payment or integrity fee to the leagues.
Regarding where the state’s cut of sports betting revenue, previously filed bills have earmarked it for education, the state’s pension fund or capital construction, Rita said.
He stated he plans to bring all the sports betting stakeholders together to find a consensus on sports betting, then create a passable bill. Rita’s SB 7, introduced in 2017 and has been amended dozens of times and still is alive. In addition, state Senator Napoleon Harris, a former NFL player, and state Senator Steve Stadelman both filed bills this year. Harris’ bill, which called for an integrity fee, died in committee. Stadelman’s bill, the “Sports Betting Consumer Protection Act,” remains in the Assignments Committee.
