Illinois Rep. Bob Rita has introduced an amendment to the state’s Sports Wagering Act that would allow sports wagering exchanges in the Land of Lincoln.
HB 1405 would allow the Illinois Gaming Board (IGB) to award up to two licenses for exchange trade wagering, defined in the bill “as the buying and selling of betting contracts at any time prior to the conclusion of an event based on a describable zero to 100 scale of probability and employing 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.”
If passed, the amendment would take effect immediately and make Illinois only the second U.S. state to permit exchange wagering, along with New Jersey, where Prophet and SportTrade currently conduct business. Rita’s bill calls for adjusted revenue from sports exchange trade wagering to be taxed at 15%, the same as sportsbook operators in the state.
Rita is the House’s point person when it comes to most aspects of gaming and was one of the principle players in legalizing sports wagering in Illinois in 2019. There is language in the 2019 bill that includes “exchange wagering” as part of the definition of sports wagering.