Illinois Reconsiders In-Person Registration and College Betting Bans

Illinois online gambling

Illinois is the latest state having buyer’s remorse when it comes to its previously passed sports betting legislation. In the Land of Lincoln, there are multiple wrinkles to iron out. Those wrinkles are in-person registration and a wagering prohibition on in-state college sports, which were discussed in a hearing Wednesday.

The committee also discussed Illinois online gambling (poker and casino) and a potential prohibition of sweepstakes machines.

Legislation Addressing In-Person Registration

The issue of in-person registration has been a rollercoaster ride in Illinois. The state’s sports betting law was designed to require in-person registration for mobile accounts for the first 18-months. But along came COVID-19 and the shutdown of land-based casinos, and suddenly that requirement went from a significant inconvenience to a death knell for mobile sports betting.

Fortunately, Gov. Pritzker stepped in and issued an executive order allowing remote registration and extended the EO several times. So, it was surprising that the governor decided not to extend the EO in early April.

As Pritzker’s office explained to the Chicago Sun-Times:

“Illinois is currently in phase four with vaccination rates rapidly increasing and casinos around the state have reopened with safety guidelines in place, so the suspension of in-person sports betting registration requirements is no longer needed.”

Pritzker caught some heat for the decision, but he merely reinstated the law as written by the legislature. However, it appears the legislature is of a different mind in 2021.

The topic came up in an Executive Committee hearing on Wednesday, but no formal legislation has been filed to reinstate mobile wagering.  

And Then There Is the Ban on In-State College Betting

Lifting the ban on in-state college sports betting has been formally introduced. Rep. Mike Zalewski’s bill, HB 849, would do just that, but it also allows a college to request a suspension of betting if there is cause to believe it could affect a student-athlete.

As the Daily Herald reports, the amendment allows the Illinois Gaming Board to suspend betting on in-state colleges if “the college or university has a reasonable belief that a player of that team has been influenced, has suffered mental or physical injury, or has otherwise been affected by a wager.”

Illinois Isn’t Alone

From New Jersey to Tennessee, states are wrestling with some of their prior decisions.

Like Illinois, New Jersey sports betting regulators are having second thoughts about a prohibition of in-state college sports. The legislature is looking to do away with the policy through a public referendum.

Tennessee is in a different boat, as the state contends with one of its TN sports betting operators whose primary business is payday loans. This mashup has raised some alarm bells and legislation to decouple the two businesses. A separate issue resulted in a temporary suspension of the operator’s license, a court case, and an injunction in favor of the operator.

“The Court finds, at this preliminary stage, that Action 24/7 has clearly shown the likelihood that its rights are being violated and it will suffer immediate and irreparable injury pending a final judgement,” the temporary injunction states.

A Message to States Tackling Sports Betting

The decision to revisit these sports betting laws is worth noting, as states are not in the habit of reopening and amending existing laws, particularly recently passed laws. As such, states considering sports betting legislation should pay close attention to the policies causing other states to tinker with recently enacted sports betting laws.

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