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The launch of legal sports betting in Illinois is nearing, despite the uncertainty surrounding the exact timeline. Recent updates have addressed two important issues related to sports betting in the state.
The Illinois Gaming Board has officially released applications for licenses and introduced new emergency rules.
Breaking down the two Illinois sports betting updates
These two developments were interdependent, as they rely on each other for their significance. Without one, the other would lack purpose on its own.
The license application forms require the enforcement of emergency regulations, which in turn depend on justification provided by the license applications.
Most of the emergency regulations for legal sports betting in Illinois focus on outlining the obligations and responsibilities of license holders. These regulations cover a variety of requirements that license holders must adhere to.
- Meanings of terms used in the applications.
- List of roles that require license holders to fill.
- Description of the differences between various licenses.
- Revealing all ownership shares.
Although most industry principles are generally accepted, there is one area that sparks debate among stakeholders. The controversy revolves around the emergency regulations concerning licensees’ involvement in investigations carried out by sports governing bodies.
Emergency rules favor leagues regarding sportsbook information
For instance, the recent suspension of Josh Shaw by the NFL serves as an example of how these rules provide a clear protocol for the league to address cases involving suspected betting on NFL games by potential future NFL players at legal sportsbooks in Illinois.
The NFL can ask for information on bets placed with a specific sportsbook, but the sportsbook operator has the ultimate authority to approve or deny the request, in whole or in part.
If the sportsbook operator denies the request, the matter may not be closed. The IGB has the authority to override the operator if it believes that the state’s interest warrants it.
If that is true, the state will decide the extent to which the operator is required to comply with the request.
This information would certainly help leagues such as the NFL investigate potential internal disciplinary issues. However, criticism of such rules is also valid.
Controversy around integrity rules in Illinois
Similarly to the leagues, sportsbooks face significant risks from integrity issues and stand to lose a lot. Therefore, the potential benefits of sharing information with the leagues could be substantial for them as well.
Sportsbooks could improve their safeguards against suspicious activity by gaining a better understanding of its nature.
If integrity is the top priority, it makes sense that the leagues would be required to disclose any information they uncover to the sportsbooks.
The current rules do not allow for that, but this could change as the rules are set to expire in 150 days. This information will provide context for future decisions.
What’s next for legal sports betting in the Land of Lincoln
After potential licensees submit their completed applications, which include five years of tax returns, the IGB will begin reviewing them. The length of this process is currently uncertain.
The board aims to complete the licensing process and grant licenses within the 150-day period of the emergency rules’ expiration. Making these emergency rules permanent is an option for the board, but it would pose an administrative challenge.
After operators receive licenses, they can start building their sportsbooks in the state. The board will then review the books for compliance before setting a date for when they can start accepting bets officially.
Given the lengthy duration it has taken to reach this point, individuals in Illinois should not expect a swift change moving forward. Nevertheless, this signifies significant progress towards the launch date.
