Online Gambling in Illinois Scrutinized in House Committee Debate

Illinois legislators have pushed forward with their promise of considering the legalization of online betting. In a recent House Executive Committee meeting, they talked about matters regarding sports betting.

The proposed Internet Gambling Act could change the landscape of sports betting in the state. Some of the proposed issues are getting rid of in-person registration, and betting on collegiate sports. During this meeting, the committee discussed almost a dozen proposals.

 The Future of Illinois Online Gambling

From the eyes of onlookers, the future of online gambling in Illinois is bright. The Illinois General Assembly seems to be favoring the act. If there is any cause of doubt, it probably is regarding the launch date. Even though sports betting was legalized in 2019, the first app wasn’t launched until June 18. Illinois is looking to speed up the timeline for iGaming legalization. Some of the best Illinois online gambling sites can be found here.

The law on sports betting demands that gamblers register at local retail casinos within the first six months. This law is contained in the Internet Gambling Act. Betting enthusiasts in Chicago will be forced to travel out of the municipality to register.

The city has been considering proposals to establish its first retail casino. However, it won’t be choosing a winner until the beginning of 2022. It isn’t clear how long the construction process may last. Luckily, there are a few casinos close to the official city limits.

 In-Person Registration Still Receiving Critical Support

The head of William Hill government relations, Trevor Hayes, proposed the removal of in-person registration requirement. His proposal was backed by John Pappas, a spokesperson of the trade group iDEA Growth.

Both of them believe that in-person registration is unnecessary and a waste of time. According to Hayes, 75 percent of all the bets at William Hill are placed online. In some states, the number goes beyond 90 percent. Penn National Gaming official, Jeff Kaplan also proposed the removal of this registration requirement.

In-person registration isn’t good for the market. As an illustration, Gov. JB Pritzker suspended these registrations twice during the peak of the pandemic.  The suspension may have propelled the growth of sports betting in the state. The numbers quickly surpassed Pennsylvania in February. It is pretty clear that in-person registration is not necessary anymore.

Iowa, the state next door, is another great example of in-person registration and why it is bad for the industry. Its handle leaped to $149.5 million in January. It was a 42.7 percent increase from $104.8 million in December. This improvement was only recorded after ending the in-person registration requirement.

 The House Committee Chairman Concerned Over Retail Casino Layoffs

In a long sitting, Committee Chairman Rep. Bob Rita stated that the opinions of stakeholders were welcomed. They would shape the gaming package of Illinois. The chairman specifically raised concerns that the Internet Gaming Act may cause many employees to be laid off.

When pandemic restrictions were enforced, retail casinos were forced to either close or lower their capacity. This caused a massive loss of employment. Speaking on behalf of iDEA Growth, John Pappas acknowledged that the question of layoffs was difficult to speak answer.

The association represents sports betting and online gambling operators. It supports the idea of legalizing online poker and iGaming.

Before the hearing, John Pappas expressed his appreciation for input from industry representatives. These representatives were from 30 companies in the association. They include Sports radar, and Daily Fantasy Sports leaders FanDuel, and DraftKings.

According to Pappas, iGaming may actually increase employment opportunities. Jeff Kaplan agrees that iGaming is unlikely to cause the ‘cannibalization’ of retail casino revenue. He points to Pennsylvania as an example of this. According to Kaplan, it will actually be beneficial to land-based casinos.

Trevor Hayes of William Hills explains that iGaming may be great for land-based casinos. Since online bettors are generally young, they are likely to visit casinos to supplement their online play.

 Some Representatives Aren’t Receptive

A few representatives, including committee chair Rep. Robert Rita, aren’t in support of the new legislation. They continue to defend the 2019 legislation requiring in-person registration.

The 2019 law had an 18-month period within which you could sign up in person. The committee chairman insisted on the importance of supporting land-based casinos. However, there is no evidence that online registration may hurt their operations.

  The Possible End of In-State College Sports Betting Ban

Rep. Michael Zalewski is proposing the removal of the ban on in-state college sports. He reports that even though the prohibition may be well-intentioned, it isn’t meeting its goal. He uses offshore books and the neighboring states as examples to illustrate his point.

According to Pappas, this ban limits the betting market by up to 15 percent. He supports Zalewski’s remark that the ban isn’t meeting its purpose. It isn’t upholding the integrity of betting or protecting college players.

However, Josh Whitman, University of Illinois Athletic Director, opposes these sentiments. According to him, student-athletes are susceptible to bad influence. They need to be protected. According to him, the ban is good for protecting athletes’ mental health. It limits negative messages from fans.

 IGaming Could Help Illinois Generate $1 Billion In Five Years

According to Pappas, the revenue from Illinois operators may hit $250 million in the first year if iGaming is legalized. He anticipates that the state may receive direct and indirect benefits amounting to $1 billion within the first five years.

These sentiments are echoed by Kaplan, who also believes that iGaming will be profitable to the state. He estimates that the revenue may surpass Michigan’s. He believes that it will be a good way to make up for the money lost when the pandemic struck.

Brendan Bussmann of Global Market Advisor, has the same testimony. He believes that the demand for iGaming is high, and it is time for the State to meet it.

Even though the bill has received a lot of support, it has received its share of criticism. However, the most appealing part of it, for most proponents, is the removal of the in-person registration requirement.

They believe that bettors shouldn’t have to travel when they need to register. Since online operators have plenty of safety measures in place, there is no need to believe that in-person registration will make bettors safer.