The bill permits the Illinois Gaming Board to issue up to two exchange trade wagering licenses. To qualify, applicants must be at least 21 years old, have no criminal record, and demonstrate the competency required for sports wagering operations. An initial license fee is set at $500,000, with a renewal fee of $100,000 every four years. This creates a significant financial barrier to entry but also intends to regulate the market carefully and prevent fraudulent activities, including money laundering and problem gambling practices.
SB1881, introduced by Senator Bill Cunningham, amends the Sports Wagering Act in Illinois by establishing a framework for 'exchange trade wagering.' This new form of wagering allows individuals to buy and sell betting contracts based on a probability scale from zero to 100, employing market surveillance technologies akin to those used in financial markets. SB1881 sets out specific licensing requirements and defines the operations of exchange trade wagering, aiming to incorporate responsible gambling measures within this new market segment.
One of the notable points of contention relates to the bill's provision that the exchange trade wagering license shall not be viewed as a property right, which could raise concerns among prospective licensees regarding the security of their investment. Furthermore, while the bill aims to standardize the taxation of exchange trade wagering licenses to match those of master sports wagering licenses, discussions may arise regarding the potential effects on existing sports betting markets and their competitiveness. Some stakeholders may view this regulatory approach as either a beneficial standardization or as an excessive control that could impact market dynamics.