Illinois Legislature Contemplating Key Sports Betting Change

When the Illinois legislature initially passed sports betting legislation in 2019, they made clear that residents would not be able to wager on in-state college sports through online wagering sites. At the time, it seemed like a good idea, something that a number of other states had also done. After two years of restricting wagers on in-state college teams, the legislature has decided to take a look at the law.

Last week, House Representative Jonathan Carroll sent HB 4041 to the House floor for debate. If passed, the bill would permit Illinois online sports betting to start accepting online wagers on games that involve Illinois colleges and universities like Illinois State, Northwestern, and the University of Illinois. This would represent a major for online operators given that 94% of all sports wagers made in the state are made through online websites and mobile apps.

Opposition to the Change

Back in 2019 when sports betting legislation was being drafted, opposition to wagering on in-state college teams came from the schools themselves. It was the state's athletic directors who feared that allowing wagering n their sports teams would risk compromising athletic football and basketball programs.

Fast-forward to April 2023 and very little has changed on college campuses. Many of the same athletic directors still oppose online in-state college sports team wagering.

Representing the state's athletic directors is Josh Whitman, athletic director at the University of Illinois. In a recent House Gaming Committee hearing, he testified to lawmakers that:

“Our athletic programs bear 100% of the risk of the decisions that you all are making. By implementing more broad-based in-state collegiate sports gambling, the people who are placed at risk are our student-athletes, our university students, and the integrity of our contests.”

Originally, legislators were going to expand in-state college sports wagering on a temporary basis. They wanted to see if there would be any ill effects if they made the change permanent. While there was no evidence of impropriety during the trial period, Whitman is still calling for the cessation of all online sports betting involving Illinois universities.

The Current Disposition of the Trial Program

This issue has moved front and center because the trial online in-state sports betting program is due to expire on June 30, 2023. If the legislature decides to do nothing, online sports wagering on Illinois schools would remain illegal.

Despite his best efforts and intentions, it would appear that the committee does to agree with Whitman's assessment. They seem to be in favor of approving HB 4041 and opening up the mobile sports betting windows to residents who want to wager on their favorite college teams.

Sensing things might not go in his preferred direction, Whitman has even suggested some kind of a revenue-sharing program with the universities. He stated universities could use these funds to combat on-campus problem gambling issues.

For now, it looks like residents might finally get what they want. A final disposition could be forthcoming in May 2023.