Rep. Michael Zalewski filed two amendments to Illinois sports betting legislation ahead of Wednesday’s subcommittee hearing.
The amendments, which replace the five proposals previously discussed in the state, would establish licensing and tax fees unprecedented in the US sports betting market.
While H 3308 served as the Zalewski’s sports betting bill in earlier discussions, the amendments shift the focus to H 1260. This week, Zalewski took over as primary sponsor of the bill, which will apparently be the new IL sports betting vehicle.
Neither amendment requires in-person registration for mobile wagering.
Amendment 1: All-inclusive for in-state stakeholders
The first proposed amendment authorizes Illinois sports betting for riverboat casinos, horse racing tracks, off-track betting (OTB) parlors, video gaming operators and the lottery. Key elements include:
Riverboats can operate a sportsbook in their facility and use either one online skin or one brick-and-mortar sportsbook in any location, including a sports stadium.
Horse tracks can host a sportsbook and use one online skin or have a sportsbook in three of their authorized OTBs.
Video gaming operators can place sportsbooks in 10% of licensed establishments and operate one online skin.
All master license fees are $10 million or 5% of net terminal income, adjusted gross receipts or total handle — whichever is greater. Skin licenses are $5 million each. Adding a sports stadium, OTB or other brick and mortar location is another $5 million.
Tax rate is 25% of adjusted sports wagering receipts.
The lottery can allow parlay wagering in 2,500 retail locations. Initial license fee is $30 million and tax rate is 100 percent of sports wagering receipts.
Amendment 2: Separate online licenses
The second option does not include the lottery but does allow for companies such as DraftKings Sportsbook and FanDuel Sportsbook to get their own licenses at a higher cost, with the possibility of a bad-actor delay. The amendment also gives in to sports leagues demands on integrity fees and data. Key elements include:
Seven brick-and-mortar licenses for $15 million each to go to the first seven applicants among the state’s riverboats, horse tracks and video gaming terminal operators.
Three online licenses available for $20 million each.
$5 million for a skin license.
Tax rate of 25% on annual adjusted gross receipts with funds going evenly to the State Construction Account Fund, Pension Stabilization Fund and Common School Fund.
Horse tracks must pay 2% of AGR to the Horse Racing Purse Fund.
An integrity fee of 0.2% on handle paid to the sports leagues.
In-game wagers require the use of official league data, if desired by the sports league.
Prohibits betting on collegiate sporting events taking place in Illinois.
Prohibits any entity that participated in unlawful gambling operations from receiving any type of sports wagering license for a period of three years.
https://www.google.com/amp/s/www.le...294/illinois-sports-betting-amendments-2/amp/
The amendments, which replace the five proposals previously discussed in the state, would establish licensing and tax fees unprecedented in the US sports betting market.
While H 3308 served as the Zalewski’s sports betting bill in earlier discussions, the amendments shift the focus to H 1260. This week, Zalewski took over as primary sponsor of the bill, which will apparently be the new IL sports betting vehicle.
Neither amendment requires in-person registration for mobile wagering.
Amendment 1: All-inclusive for in-state stakeholders
The first proposed amendment authorizes Illinois sports betting for riverboat casinos, horse racing tracks, off-track betting (OTB) parlors, video gaming operators and the lottery. Key elements include:
Riverboats can operate a sportsbook in their facility and use either one online skin or one brick-and-mortar sportsbook in any location, including a sports stadium.
Horse tracks can host a sportsbook and use one online skin or have a sportsbook in three of their authorized OTBs.
Video gaming operators can place sportsbooks in 10% of licensed establishments and operate one online skin.
All master license fees are $10 million or 5% of net terminal income, adjusted gross receipts or total handle — whichever is greater. Skin licenses are $5 million each. Adding a sports stadium, OTB or other brick and mortar location is another $5 million.
Tax rate is 25% of adjusted sports wagering receipts.
The lottery can allow parlay wagering in 2,500 retail locations. Initial license fee is $30 million and tax rate is 100 percent of sports wagering receipts.
Amendment 2: Separate online licenses
The second option does not include the lottery but does allow for companies such as DraftKings Sportsbook and FanDuel Sportsbook to get their own licenses at a higher cost, with the possibility of a bad-actor delay. The amendment also gives in to sports leagues demands on integrity fees and data. Key elements include:
Seven brick-and-mortar licenses for $15 million each to go to the first seven applicants among the state’s riverboats, horse tracks and video gaming terminal operators.
Three online licenses available for $20 million each.
$5 million for a skin license.
Tax rate of 25% on annual adjusted gross receipts with funds going evenly to the State Construction Account Fund, Pension Stabilization Fund and Common School Fund.
Horse tracks must pay 2% of AGR to the Horse Racing Purse Fund.
An integrity fee of 0.2% on handle paid to the sports leagues.
In-game wagers require the use of official league data, if desired by the sports league.
Prohibits betting on collegiate sporting events taking place in Illinois.
Prohibits any entity that participated in unlawful gambling operations from receiving any type of sports wagering license for a period of three years.
https://www.google.com/amp/s/www.le...294/illinois-sports-betting-amendments-2/amp/
