Illinois Senate Considers Bill to Ban Sports Betting at Arcades

Lawmakers in the Land of Lincoln want to shut down a new form of sports betting before it even begins. 

Illinois Senator Bill Cunningham introduced HB 2724, which would ban arcades from offering any form of sports betting. The bill is in response to the popular adult arcade chain Dave & Busters' unveiling plans to allow customers to bet against each other on games. 

D&B’s new offering isn’t legally considered gambling since bettors would be wagering against each other instead of the house. This loophole allows this option to be offered across the US, including states where sports betting remains illegal.

“We’ve been cautious with how we regulate gambling in Illinois, whether that is on sports, table games, or video poker,” Sen. Cunningham said in a release. “Arcades marketing as family fun shouldn’t be in the business of exposing minors to gambling.”

Arcade betting is seen as a trigger for problem gambling, and many worry about the fallout from angry (and often drinking) bettors who are losing money.

Ohio and Pennsylvania have also seen bills challenging this new form of gambling, and more are expected to follow suit over the coming month.

Alternative Sports Betting Options Continue to Pop Up

Arcade betting is not the only sports betting alternative to pop up over the last year. DFS sites and trading platforms have also begun to use the same loophole as D&B to allow customers to wager on sports. These operators have been operating within US law, but lawmakers at all levels of government are starting to cry foul.

The country is rapidly approaching an inflection point for legal sports betting. The industry has thrived since its launch, but the market has been hyper-competitive for operators. That has left many unable to crack into the regulated industry, leading them to seek an alternative solution.

States like Illinois are fighting to protect their regulated markets, but this may not make much difference if the federal government continues to ignore the problem.