Legal sports betting options in Illinois could be expanding to something beyond retail sportsbooks and online sports betting sites.
A proposed amendment this week would provide “exchanged trade wagering” in the Prarie State if House Bill 1405 presented by Rep. Robert Rita can pass. It calls for the Illinois Gaming Board to allow up to two approved exchange trade wagering licenses.
Betting exchanges would allow Illinois sports betting participants to wager against one another instead of just on odds provided by the sportsbook.
These exchanges would be monitored by a “recognized market surveillance technology used in United States financial markets that is capable of identifying wagering activities indicative of problem gambling, money laundering, and other actions detrimental to the integrity of sports wagering,” according to HB 1405.
Joining New Jersey
Illinois would be second to legalize betting exchanges as New Jersey is currently the only state to offer a licensed, regulated exchange through Prophet and SportTrade. Those mobile apps allow sports bettors to post prices or accept prices from other bettors. This method can appeal to those looking to reduce juice and get more favorable odds than what traditional sportsbooks have to offer.
There are several other exchanges operating in 45 states that aren’t regulated. They are popular for bettors in the U.K. and more are expected to try U.S. markets in the near future. Betfair, the largest betting exchange in the world, recently purchased FanDuel.
Part of this issue with the growth of legalized exchanges in the U.S. is the inability of a bettor in one state to accept or wager with a bettor in a different state.
Rich sports betting playground
Illinois seems like a good playground for betting exchanges. The Prairie State represents one of the top markets in the country in handle, ranking behind only New York and New Jersey nationally in 2022. The state claimed over $1 billion in wagers accepted in November for the second consecutive month.
There’s plenty of competition within the state already as there are seven legal mobile sportsbooks: FanDuel, DraftKings, PointsBet, Caesars, BetRivers, BetMGM, and Barstool.
There are also 12 retail sportsbooks throughout Illinois and two more on the way. There is also movement in the state legislature to allow retail sportsbooks at pro sports venues like Wrigley Field (Chicago Cubs) and the United Center (Bulls, Blackhawks).
