Fansided

Illinois Senate DFS bill will have to wait until next month to find out its fate

By Derek Helling

Sep 12, 2015; Dallas, TX, USA; A general view of the DraftKings sign board during the match with FC Dallas playing against New York City FC at Toyota Stadium. Mandatory Credit: Matthew Emmons-USA TODAY Sports
Sep 12, 2015; Dallas, TX, USA; A general view of the DraftKings sign board during the match with FC Dallas playing against New York City FC at Toyota Stadium. Mandatory Credit: Matthew Emmons-USA TODAY Sports /
facebooktwitterreddit

A bill that would legalize and regulate both daily fantasy sports and online gambling in Illinois was passed by the state’s Senate on Wednesday night, but for now, it will go no further.

HB479 received a significant amendment on Wednesday that essentially turned what was a House bill to renew the state’s official seal into an Illinois Senate DFS bill.

Mere moments after the Senate voted 42-10 to approve the bill with the added amendment, the Illinois House went into recess without voting on the bill as approved by the Senate. That means that no more action will be taken on the bill until at least June 8, when the next legislative session begins.

Most DFS sites have not accepted submissions from Illinois residents since late in 2015, when the state’s attorney general Lisa Madigan declared DFS to be illegal gambling based on her interpretation of the state’s laws. HB 479 would drastically change the law on DFS.

The bill is very similar to laws already enacted in other states. It creates regulations for site operators including age restrictions (no one under 21 years of age may play), access to assistance for problem gamblers and disclaimers of experienced players being involved. The bill also builds a framework for the industry to be taxed by the state. Instead of a flat registration fee, the bill assesses taxes based on gross revenue taken in by the sites on the following schedule:

  • 5 percent of gross revenue up to $1 million
  • 7.5 percent of gross revenue exceeding $1 million up to $3 million
  • 10 percent of gross revenue from $3 million to $8 million
  • 15 percent of gross revenue exceeding $8 million

Next: Each State's Sports Mt Rushmore

DFS is just half of the bill, however. Similar structures are created for online gambling. Most of the language is very similar, with consumer protections like the creation of a database of individuals who have had gambling addiction issues. Similarly, a structure for taxation on a graduated scale as gambling revenues go up is part of the bill.

What Illinois residents should take away from this news is that while the passage of this bill theoretically opens the door for DFS to return to a state with two MLB teams, an NBA franchise, NHL team and NFL franchise, the process is far from completed.

Even if the House approves the bill in its current form upon reconvening and Governor Bruce Rauner signs the bill or allows it to become law by taking no action on it, that may only be the point at which the legal battle begins.

The state of New Jersey passed a bill that also legalized and regulated expanded gambling, and it was immediately met with lawsuits from the NCAA and other professional sports entertainment organizations like the NFL. It’s possible that similar suits could be levied against this bill because of its tenants regarding online gambling. If that happens, it could be years before anything is final.

At this point, it looks like watching the progress of this bill is going to be a waiting game. There won’t be any action on it at all until June 8 at the earliest, and that may just be the beginning of the drama.