Illinois Bill Would Ban Credit Cards for the Gambling Industry

When it comes to constant updates and regulation changes, Illinois sports betting has seen more adjustments than most states.

House Bill 4149 was introduced in the state legislature today, proposing to ban the use of credit cards when gambling. The ban would cover Illinois’ sports betting, casino, and lottery industries. It would also require casino ATMs to reject cash advances for credit cards.

Responsible gaming groups have long linked online credit card deposits to problem gambling. Their ability to access funds based on credit can lead bettors to spend more than they can afford without realizing it. This can lead to massive debts, which are made worse by interest rates. 

Credit cards have also plagued the casino industry for years. While brick-and-mortar casinos require cash to gamble, their ATMs have allowed bettors to get cash advances. This usually involves high fees that plunge bettors deeper into debt. 

Proponents of the bill will close a loophole for bettors to wager without using their own cash. With ATM cash limits and banks able to limit transactions, bettors are protected from losing too much too fast.

While the bill's goal is to combat problem gambling, some opponents fear it could have the opposite effect. Bettors suffering from gambling addiction may look for alternative options to wager using a credit card, including offshore sportsbooks and casinos.

Bill Could Face Stiff Opposition

The sports betting industry has been supportive of problem gambling initiatives across the country, but there is reason to believe it will oppose the proposed ban in Illinois. 

The state has been at odds with online sportsbook operators since its new per-bet tax was passed. The move came just a year after the state switched to a tiered annual tax system, where small operators saw their rates increase by varying amounts. This led sportsbooks to enact new fees and minimums to help recoup the revenue lost to the tax increases. 

If passed, the credit card ban would likely lead to a drop in wagers, leading to another revenue hit for sportsbooks. This could prompt the industry to take a stand and oppose the change, triggering yet another battle with Illinois.