State lawmakers are looking at adding sports betting and online gambling to the state’s gaming portfolio, but the lead policymaker behind draft legislation said they have to make sure taxes on such transactions don’t force people elsewhere.
There are a lot of moving parts involved in expanding gambling in Illinois beyond casinos, horse racing and video slots at the neighborhood bar. Previous talks have focused on new casinos or fantasy sports betting, but after the U.S. Supreme Court opened the door to legalizing real sports betting in May, state Rep. Lou Lang, D-Skokie, has been investigating how Illinois could make it happen.
He told a committee in Springfield on Wednesday that lawmakers must consider a whole host of things, including how to handle the all the technology involved, whether to allow only one vendor, and making sure not to violate the Federal Wire Act.
“You cannot transmit the types of info that involves sports betting across state lines over a wire,” Lang said. “Every state that wants to do this must be insulated.” However, he said if the law were repealed “Illinois could be a hub” for sports betting. He also talked about allowing sport betting online, rather than just in brick-and-mortar locations. That would capture even more revenue, Lang said. He warned lawmakers to take their time to get it right, including not taxing too much. “It will drive people out of the market and it will hurt the bottom line for the state,” Lang said. “For me, this is about the bottom line for the state, and economic development.”
Lang estimates the revenue from sports betting could be anywhere from $50 million to $300 million. How to spend that money is another question.
“We have many needs,” Lang said. “We can pay pensions. We can put it into the mix as part of a large capital bill.”
Jim Ryan, CEO of gaming company Pala Interactive, said he wants to see Illinois legalize and regulate not just sports betting, but online gaming as well. He told the committee the night before in his hotel he logged on to an illegal online gambling website, placed a sports bet and was asked to play various other games of chance. There were no assurances his money, or other information, was secure because it was an illegal website.
He said it’s better to regulate such activity so there can be consumer protections.
Illinois Church Action on Alcohol and Addiction Problems Executive Director Anita Bedell said regulating it will simply magnify gambling problems, such as addiction.
“People who would not go to an illegal website, who would not go to an illegal bookie, would do so because it’s legal,” Bedell said.
Ryan said he understands those concerns.
“To her point, the industry will become larger because it’s regulated, but it will become larger in a regulated and responsible environment,” Ryan said. “I’d take that over the former.”
If Illinois, were to legalize sports betting and online gambling, Ryan estimates the state could rake in more than $800 million.
Lang expects a package of gambling bills in the new General Assembly in January.
