A new Illinois gambling bill has been filed by State Representative Bob Rita. The bill would allow for exchange trade gambling commonly referred to as peer-to-peer betting.
For those unfamiliar, peer-to-peer betting is simply a bet between two individuals.
New Illinois gambling bill
The bill, HB 1405, would amend the Sports Wagering Act to create an exchange trade gambling license. According to the bill:
“The Illinois Gaming Board may issue up to 2 exchange trade wagering licensees. Provides for eligibility of an applicant for a license and for specified licensing requirements and fees. Provides that the license shall not be considered a property right.
Taxes levied and collected from an exchange trade wagering licensee shall be the same as taxes levied and collected from a master sports wagering licensee. An exchange trade wagering license is limited to exchange trade wagering and may not be used to allow a licensee to participate in other types of gambling.”
The law will take effect immediately if passed by the state legislature and signed by Gov. JB Pritzker.
Is exchange trade gambling a thing?
The appetite for exchange trade gambling is unclear. But state Rep. Rita might be aiming to capitalize on those interested in trading crypto and other financial instruments.
For now, there are only two options for exchange trade gambling options in the US, Prophet and Sporttrade. Both platforms are available in New Jersey, having launched before the start of the 2022 NFL season.
In 2019, Mark Miscavage, an executive at London-based betting exchange Smarkets said the Wire Act is the biggest hurdle to creating exchange trade gambling in the US.
According to Miscavage, the Wire Act prohibits betting across state lines; thus, it would limit the size and liquidity of the betting pools.
Speaking about the potential of opening an exchange in the US, Miscavage said: “The biggest hurdle for us would be able to pool liquidity, in this case, between all the states.
I don’t know that there is one state that’s quite big enough to provide the liquidity and volume needed to run an effective exchange just for one state.”