Gambling Expansion On The Agenda In Illinois Today
Wednesday’s hearings to address sports betting and online gambling?
Wednesday could turn out to be an important landmark for the Illinois gambling industry as two House sub-committees merge to discuss a variety of gambling expansion issues that include sports betting, online gambling and daily fantasy sports.
The indefatigable Representative Bob Rita is again the driving force behind the latest moves, which originated as Senate Bill 7 last year, went to the Rules Committee in May and was the subject of a hearing in August which introduced tax benefits for land casinos and tracks in the state, along with other amendments.
However, with the November elections looming, and the impact that might have on the membership of the state Legislature, it is by no means certain whether this morning’s hearing in Springfield will drive the proposals forward.
The list of witnesses set to give testimony appears reasonably balanced and includes religious bodies campaigning against addiction, politicians, operators, DFS operators, professional sports leagues, geo-location experts GeoComply along with gaming test agencies and consultants.
Diversity Of Views At Illinois Gambling Hearing (Update)
But don’t expect any ground breaking news just yet
Wednesday’s Illinois legislative hearing on gambling heard a variety of views for and against various types of gambling before closing with no firm conclusions reached, but its goal of hearing testimony achieved.
Right from the start it was clear that whilst land and online casino gambling, DFS, and sports betting were all open to discussion the emphasis would be on the latter, with a strong presence by the sports leagues keen to push for their now well-known demands of control over sports data and a cut of the betting action in the form of “integrity” or “royalty” fees.
State officials guesstimated that a licensed and regulated online sector could generated substantial revenues from which the state could expect a $100 million tax bonanza, but Rep. Lou Lang stressed the importance of “doing it right” when considering any expansion of gambling, opining that it was an important tool for economic expansion, but warning against the adoption of the unwieldy and complex Pennsylvania sports betting model.
Surprisingly, he appeared to support the sports leagues’ demands for a share of any state sports betting revenue, saying: “I don’t have a problem giving major league sports a fee, but I want to give them a fee for something. Not a fee for nothing. I have proposed to them … that any fee they get ought to be in exchange for information we need — data, pictures, videos, demographic and marketing information.
Several representatives of sports leagues and associations spoke for royalty or integrity fees and the right of leagues to control sports data.
Despite the focus on sports betting, several witnesses testified for the introduction of licensed and regulated online gambling, including technical testimony on the efficacy of geo-location technology in enforcing state borders and the efficiency of ID and age verification, and financial transactions. Consultants reprised Rep. Lang’s pleas to ensure the right measures are passed, stressing it was important to “do it right”.
American Gaming Association witnesses gave a polished and comprehensive performance supporting legalised sports betting, whilst experienced online gambling executive Jim Ryan, speaking on behalf of the iDevelopment and Economic Association laid out the dangers of unregulated or licensed operators accessing the market.
He used a personal anecdote centred on his exercise the night before in joining an unlicensed offshore gambling website, making a deposit and gambling, all in what he said was a “seamless” process but which had entailed no ID verification or other responsible gambling measures.
“I have no idea if the game I played last night is fair. I have no idea if the $75 I deposited continues to exist. And I don’t know, if in fact the Bears beat the Patriots, if I’ll be paid,” he said in illustrating the dangers to consumers.
Ryan also advocated the legalisation of online gambling, pointing out: “If an objective of the committee is to generate revenue, sports betting is doing half the job. The casino and poker marketplace are equal in size, if not larger than sports betting,”
Rep. Mike Zalewski stated the case for the inclusion of DFS in state regulated gambling expansion, outlining the size, integrity and responsible behaviour of major operators.
Anita Bedell of the Illinois Church Action on Alcohol and Addiction Problems opposed expansion, saying that Illinois has more than enough ways for residents to gamble, with casinos, racetracks, OTB parlors, 30,000 video gambling machines, thousands of lottery retail outlets, internet horse racing, raffles, poker runs and charitable gambling.