Two bills coming forward from the Illinois General Assembly and the Senate call for daily fantasy sports to be regulated separately from sports betting. The Coalition for Fantasy Sports has endorsed this legislation.
Safeguards for DFS
Two daily fantasy sports (DFS) bills whose language virtually mirrors the other, have made their way to their respective chambers for consideration. Representative Eva-Dina Delgado has filed HB 5648 while Senator Lakesia Collins has sponsored SB 3710, with both calling for separate regulations to govern the DFS industry in Illinois.
The two key distinctions from how the DFS industry is governed now in Illinois consist of changes in the state’s Sports Wagering Act enacted in 2019 which includes DFS in its definition of “sports wagering” and an amendment to the state’s Criminal Code of 2012 to include language that states those who operate or participate in daily fantasy sports “shall not be convicted of the offense of gambling when conducted in accordance with the Fantasy Sports Consumer Protection Act.”
Supports from Third Parties
According to its website, the Coalition for Fantasy Sports is made up of members from leading, innovative fantasy sports platforms and its mission is to protect fans, promote innovation and remove barriers to growth that threaten fantasy sports.
The organization has voiced its full support for both bills and stood with the sponsors in a joint statement that read: “The proposed legislation aims to not only protect the hundreds of thousands of fantasy sports fans across Illinois but also the integrity of the games they enjoy. The framework would ensure legal clarity, responsible play, and consumer protection while promoting innovation and removing barriers to growth that threaten the fantasy sports industry.”
The Particulars
According to both bills, the Illinois Gaming Board would set a minimum of 10% and a maximum of 15% on gross revenues, of which those monies would be earmarked for the Common School Fund. Licensing fees collected from DFS operators would see 85% directed to the Illinois’ Gaming Fund while the remaining 15% would go towards problem gambling programs governed by the Department of Human Services. One other important change to the status quo, the minimum age for DFS would be 19 as opposed to 21 for sports betting in Illinois.
Senator Collins offered this on the importance of DFS legislation, “With the popularity of daily fantasy sports soaring, now is the time to codify the industry’s legal status into state law and ensure Illinois players are best protected. That is why I’m incredibly excited to take the lead on legislation that would not only allow sports fans to continue playing the daily fantasy contests they love, but do so in a way that protects their best interests, puts up guardrails to keep bad actors out of the market, and generates potentially tens of millions in new tax revenue for Illinois.”
The Senator added, “Our goal is to provide a secure environment for fantasy sports fans across the state of Illinois. This legislation is a positive step toward ensuring that fantasy sports enthusiasts can continue participating in these contests with confidence.”
Govs Budget Increases Sportsbook Tax
Governor J.B. Pritzker plans to increase spending by more than $2 billion and he isn’t asking the citizens for more but believes the money should come from companies making it in Illinois. Mobile sportsbooks would be on the governor’s list, which would mean more than doubling the tax rate from 15% to 35% on adjusted gross revenues. It’s all part of Pritzker’s proposed $52.7 billion FY 2025 budget.
“Sports betting companies have seen exponential growth in recent years and are immensely profitable despite tax rates,” said a spokeswoman from the Governor’s Office. “This increase will help fund Governor Pritzker’s commitment to supporting working families while putting us in line with rates from many other states.”
