Illinois Daily Fantasy Sports

Illinois Daily Fantasy Sports Sites

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Illinois fans have a wide selection of fantasy sports apps and websites to choose from thanks to the state’s lenient gaming laws that treat DFS contests as games of skill.

All the nation’s mainstream fantasy sports operators and many smaller niche sites are active in the Illinois market. However, the lack of a licensing regime makes it critical that fans choose DFS sites wisely.

Below are BettingUSA’s top Illinois fantasy sports sites, spanning a range of game types such as daily fantasy, proposition picks, and parlay-style contests. Each fantasy sports app and website listed below takes a unique approach to DFS contests, but all are safe, legal, and licensed in other states.

Illinois Fantasy Sports Law

Daily fantasy sports sites are legal but not regulated in Illinois. State law does not address fantasy sports, but their legality was an ongoing debate until the Illinois Supreme Court settled the matter with a 2020 ruling that found DFS contests to be games of skill.

The decision exempted fantasy sports contests from Illinois gambling laws and cleared the way for numerous operators to enter the market. The legislature still has the power to regulate or criminalize fantasy sports, but it has never passed a bill addressing the topic.

As a result, Illinois daily fantasy sports sites and apps operate free of any legality concerns.

The Supreme Court case that generated the decision (Dew-Becker v. Wu, 2020 IL 124472) originated from a FanDuel customer who lost a $109 head-to-head fantasy contest in 2016. The losing customer sued the winner under an Illinois law that allows individuals who lose money participating in illegal gambling to recover their losses.

Lower courts decided in favor of the defendant on the grounds that illegal gambling losses are only recoverable if the individuals wager directly with one another – which is not the case on FanDuel.

The Illinois Supreme Court also ruled in favor of the defendant but disagreed with the lower courts’ reasonings. Instead, the Illinois Supreme Court ruled fantasy sports contests as games of skill and therefore not subject to the state’s illegal gambling laws.

How an Old Attorney General DFS Opinion Impacted Sports Betting

The Illinois Supreme Court ruling countered a 2015 Attorney General opinion that DFS contests meet the state’s definition of gambling and are illegal under state law.

The Attorney General’s opinion changed little on the ground because it never resulted in legal action against fantasy sports operators or even cease-and-desist letters. However, FanDuel and DraftKings sued Attorney General Madigan to prevent Illinois from shutting out both businesses until a court could decide the issue.

Meanwhile, lawmakers considered three bills (HB 3655, HB 4323, and HB 4200) following the opinion, but all died in subsequent legislative sessions.

Nonetheless, Illinois fantasy sports sites continued operations as usual between the AG’s opinion and the Supreme Court’s ruling five years later. FanDuel and DraftKings even sought to dismiss their lawsuits against the Attorney General’s office at one point as other states passed laws legalizing DFS contests.

However, the 2015 AG opinion returned to haunt FanDuel and DraftKings years later. As Illinois embarked on legalizing sports betting, local casino interest Rush Street Gaming heavily lobbied lawmakers to introduce a “bad actors” clause in the law aimed directly at FanDuel and DraftKings.

Rush Street Gaming contended the rule was necessary to ensure a level playing field because daily fantasy sports operators had gotten a five-year head start to build customer databases while operating contrary to state law.

Lawmakers acquiesced by including a provision in the law that any company that had offered daily fantasy sports after the 2015 AG opinion should be delayed from receiving an Illinois online sports betting license for 18 months.

The provision looked like a significant loss for FanDuel and DraftKings. However, both companies leveraged a loophole in the law that allowed them to partner with local casino interests and operate under modified brand names. As a result, neither FanDuel nor DraftKings had to sit in the 18-month penalty box when online sports betting began in Illinois.

Illinois Daily Fantasy Sports FAQ

Yes. Illinois has never passed legislation to formally legalize and regulate fantasy sports. However, a 2020 state supreme court decision found DFS contests to be games of skill and legal under Illinois law.

Most Illinois daily fantasy sports sites accept customers 18 or older.

Illinois does not require fantasy sports sites to apply for licenses from the state, so nearly every DFS operator accepts Illinois customers. Readers can scroll up to see BettingUSA’s top picks for reputable and well-established fantasy sports sites in Illinois.

Yes. Although Illinois hasn’t passed laws regulating fantasy sports, the state still considers winnings taxable income. Fans can read more about fantasy sports taxes here, but BettingUSA always urges readers to consult a certified professional for advice.