Buried on pages 1,281-1,289 of the Illinois budget bill that got out of the legislature in the wee hours Sunday morning is language that puts sports event contracts offered on prediction markets under state regulation.
The legislation adds a definition for “exchange wager” to the state’s Sports Wagering Act, meaning that sports event contracts that are “an agreement, contract, transaction, or swap” offered on a prediction market would fall under state regulation.
It’s unclear how the state would enforce such a law — prediction markets are regulated by the federal Commodity Futures Trading Commission (CFTC). The state is currently in court with the CFTC, which sued it in early April.
“They can’t,” a source told InGame when asked how the state could enforce the proposal if it becomes law. “It’s pretty clear, because in similar jurisdictions that have challenged the CFTC, the question of which markets, in particular, may be allowed” will ultimately be a U.S. Supreme Court decision.
HB 3019 will be sent to Gov. JB Pritzker for signature, and he will have 60 days to sign, veto, or let it become law without his signature. In addition to applying taxes on the same sliding scale (20%-40%) used for online sports betting, the bill calls for a per-transaction tax of 1.75% on each exchange wager for the first 5 million wagers, and 3.5% after that.
The bill also lowers the $20 million application fee for a standalone mobile event wagering license to $15 million and regulates daily fantasy sports.
In other news …
Colorado: The bill that bans funding wagering accounts with credit cards, prohibits some sports betting push notifications, and changes the limit on the number of account deposits from five to six per day is now law. Gov. Jared Polis signed SB 131 Monday. The new law also explicitly bans operators and affiliates from marketing to those under 21 or marketing on any media platforms where the audience “could reasonably be expected” to be under 21. Operators will also be required to provide the regulator with “all transactional data and metrics” involving sports betting, and the regulator will be required to compile an annual report. The law goes into effect Aug. 12.
Louisiana: Gov. Jeff Landry last Friday signed SB 325, the bill that bans bettors who harass athletes for gambling-related reasons. The bill unanimously passed both chambers and aims to target bettors who “threaten violence or harm” to an athlete. In addition, the Louisiana Gaming Control Board now has the right to exclude anyone who “pose[s] a threat to the interest of the state.” The new law goes into effect Aug. 1.
New Jersey: The Assembly Tourism, Gaming, and the Arts Committee Monday moved forward A 3258, the bill that would prohibit microbetting. The committee advanced the bill, 6-0, and referred it to the Appropriations Committee. An accepted amendment makes clear that microbetting, while banned on mobile platforms, would be legal at brick-and-mortar sportsbooks. Bill sponsor Dan Hutchison said during discussion that “microbetting moves at a pace that leaves little time for reflection and can encourage impulsive decision-making.” He believes the amendment is a good compromise.
Per the language in the bill, microbetting is defined as a “live proposition bet concerning the outcome of the next play or action occurring during a sporting event.” Optimove research released in January 2025 reported that 52% of all bets made in the U.S. are in-play wagers.
Rhode Island: A bill that would further open the state’s online sports betting market passed out of the Senate, 30-6, late Thursday and was referred to the House Finance Committee Friday. The amended version of S 3118 would allow for no fewer than four and no more than six online wagering platforms, and the state would begin soliciting for additional operators by Jan. 1, 2027. Since launch in September 2019, there has been one digital option for those in Rhode Island, but BallyBet earlier this year won the right to launch a platform. Sometime this fall or later, Rhode Islanders will thus have two choices.
The Senate amendment addresses adjusted gross revenue, marketing plans, and some expenses related to promotions. Among them, existing operators IGT and BallyBet would be able to subtract marketing costs from adjusted gross revenue, but new operators would not be able to. FanDuel is actively supporting an expansion, and in a Rhode Island Current op-ed this week, SVP for Public Policy and Sustainability Cory Fox pointed to the massive increase in wagering revenue in Washington, D.C. when that jurisdiction opened its market, and the idea that competition is good for consumers and state pocketbooks.
“States with competitive sports betting markets consistently generate stronger participation and higher revenue than states with limited models,” Fox wrote. “Rhode Island currently generates approximately $40 in gross gaming revenue per capita, compared to nearly $160 in Massachusetts and $90 in Connecticut.”
The House Finance Committee in April recommended a similar bill be “held for further study.” Rhode Island’s legislature is set to adjourn June 30.
