Bill Would Allow Online Betting On In-State Teams In Illinois

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Written By Dave Briggs on April 24, 2025
Illinois Fighting Illini football

New legislation was introduced in Springfield last week with the goal of amending a current law that prohibits online betting on Illinois college teams through state sportsbooks.

Representative Jonathan Carroll introduced HB4041 in the house on April 20. If approved, this legislation would allow Illinois online sportsbooks to accept bets on sports events featuring Illinois collegiate teams, as long as the wager is a tier 1 bet and does not focus on the performance of a specific athlete.

Currently, wagering on Illinois collegiate teams is permitted in the Prairie State, however, it must be done in person at a physical sportsbook.

Approximately 94% of sports bets in Illinois are placed online, making it difficult for those wanting to bet on local teams. This issue became apparent when both the University of Illinois and Northwestern University made it to the NCAA men’s basketball tournament, forcing Illinois sports bettors to visit a physical sportsbook to wager on the Wildcats and Fighting Illini.

Not much time for bill to gain traction

As of now, HB4041 has only been submitted to the house clerk. With the current session of the Illinois General Assembly ending on May 31, the bill has a limited amount of time to gain traction.

Nevertheless, another sports betting bill in Illinois is making progress and could soon be passed into law.

Senator Bill Cunningham’s SB 1508 bill, introduced in April, was unanimously approved by the Illinois Senate in a 54-0 vote. If passed, the bill would require Illinois sportsbooks to provide hourly pop-up notifications to bettors, informing them of their wagering amounts.

The pop-up will include hyperlinks and phone numbers that are connected to Illinois problem gambling resources, making it easier for individuals struggling with problem gambling to find help.

Cunningham declared, upon filing the bill:

Illinois has taken the lead in regulating sports betting, and it is crucial that we address the harmful consequences associated with gambling addiction.

We can help individuals struggling with problem gambling by requiring sports betting apps to display a pop-up message with information on resources for gambling addiction assistance.

Two other gambling bills on their way to the House

Furthermore, the Senate has approved two more gambling bills.

  • Bill 323 changes the renewal fee for Illinois sportsbook operators’ licenses from an annual $150,000 fee to a $50,000 fee every four years.
  • Bill 1462 updates the requirements for individuals with criminal records seeking an occupational license. The IGB must now assess the applicant’s criminal history, taking into account factors like the length of time since the conviction, the frequency of convictions, and the severity of the crimes committed.

For all three bills to become law, they need to be approved by the House and signed by Governor J.B. Pritzker.

Carroll also sponsored bill aiming to legalize Illinois online casinos

Carroll is responsible for HB2320, a bill that seeks to legalize online casinos in Illinois.

Nevertheless, the bill, along with a related House bill (HB2239) filed by Rep. Edgar Gonzalez, Jr., and Senate bill SB1656 introduced by State Senator Cristina Castro, have faced legislative obstacles. Consequently, it seems unlikely that online casinos will be legalized in Illinois this year.

HB2239 was moved from the House Gaming Committee to the House Rules Committee, while SB1656 was transferred from the Senate Executive Committee to the Senate Assignments Committee on the same day.

HB2320 has remained with the Rules Committee since it was sent there on Feb. 14.

Bill to authorize exchange wagering also stalled

A proposed bill allowing exchange betting in Illinois has faced obstacles.

The bill HB 1405, introduced by State Representative Bob Rita, a major figure in the legalization of Illinois sportsbooks, has been under consideration by the Rules Committee since its referral on March 10th.

The bill allowing for two exchange wagering licenses and a 15% tax on them is not expected to be approved and signed into law this year.

Peer-to-peer betting is another term for exchange betting.

In essence, it is a bet made between two individuals. This arrangement would create a legal platform for gamblers to suggest their own bets in the hopes of attracting another person’s interest.

Users set their own terms and odds, with the exchange charging a small fee similar to the vig taken by an Illinois online sportsbook.

Currently, only New Jersey allows exchange wagering, with Prophet and Sporttrade offering exchange betting services in the state.

The Wire Act in the United States has prevented the idea from gaining traction, as it prohibits gambling across state lines. This limitation hinders the growth of betting pools, with exchange wagering not being as widely embraced as traditional sports betting.

Illinois sports betting is big business

In February, Illinois reported a handle of $875.4 million according to the latest figures from the Illinois Gaming Board. This places the state in second in the country, behind only New York with a handle of $1.47 billion. Illinois surpassed New Jersey ($847.4 million), Nevada ($659.4 million), and Ohio ($639.8 million) in handle for the same month.

Illinois had seen over $1 billion in handle for four consecutive months leading up to February, making it the fourth state to achieve this milestone after New York, New Jersey, and Nevada.

Illinois reached a milestone in February by surpassing $20 billion in total sports betting handle, making it the third highest in the country behind New Jersey and Nevada.