(The Center Square) – Illinois lawmakers are considering a slew of bills affecting gambling in the state.
Fantasy sports has become tremendously popular around the country, now some lawmakers want a cut of the action.
One measure, Senate BIll 2145, would require fantasy sports companies to pay a fee to operate in the state and places a tax of up to 40% on their contest receipts. Tim Jensen of Real Time Fantasy Sports said the bill would end their Illinois operations.
“As a smaller operator, we have hundreds of Illinois players that have been with us for years if not decades, however, the half-million dollar licensing fee exceeds our total gross revenue for the state of Illinois and would effectively lock us out of the state,” said Jensen during a Senate Gaming, Wagering and Racing Committee hearing Tuesday.
Bartlett Cleland is with NetChoice, an advocate of free enterprise on the internet. He said fantasy sports companies should not be treated like sports books.
“The overbearing tax structure designed for the sports books fails to recognize the smaller margins and revenue limitations on fantasy sports,” said Cleland. “Stunning to me, fantasy platforms earn about 1/30th of the revenue of sports books.”
State Sen. Christina Castro, D-Elgin, said if you want to play, you have to pay.
“Whether the tax the gaming board proposed is the right one I’m not sure, but it’s something to say I don’t want to be taxed, I don’t want to pay fees,” said Castro. “You want the privilege to do business in Illinois, guess what, you’re going to pay for that privilege.”
Another piece of legislation would create the Fantasy Sports Consumer Protection Act which would allow the Illinois Gaming Board to regulate fantasy operators.
Another measure in Senate Bill 2399 would place limitations on betting, including limiting deposits into gambling accounts. The measure provides that a sports wagering licensee shall not accept more than 5 deposits from an individual during a 24-hour period, and shall not accept deposits made by using a credit card.
State Sen. Bill Cunningham, D-Chicago, said studies show that there are repercussions in states that allow gambling.
“They have cited an increase in bankruptcy filings in a number of the states, even some evidence of increased reports of domestic violence,” said Cunningham.
March is Problem Gambling Awareness Month in Illinois. If gambling has become a problem for you or someone you know, call 1-800-GAMBLER. Help is also available through the website AreYouReallyWinning.com and by texting GAMB to 833234.
