Illinois adds “bad actor” clause to sports gambling legislation

Some of the sportsbooks hoping to get into the game in Illinois may have just had their dreams crushed. An amendment was added to legislation being considered to legalize sports gambling that, if approved, would prevent “bad actors” from stepping foot in the state. The clause could keep companies like DraftKings and FanDuel out of the Prairie State.

The amendment was added last week to House Bill 3308 by Representative Bob Rita. It joins four other amendments that have been added to the legislation and stipulates that a vendor license or sportsbook operator’s license will not be issued to any entity that is or was affiliated with another company or entity that has accepted bets in contravention with any law in the state or the U.S.

This could mean that DraftKings and FanDuel would automatically be forbidden from seeking a license in the state. Both entities were offering daily fantasy sports gambling in 2015 and were found to be in violation of Illinois laws. They allegedly ignored a ruling by then state Attorney General Lisa Madigan and continue to provide their services to Illinois residents.

However, the amendment isn’t welcomed by all lawmakers. Some have expressed their belief that, without participation by the two companies, sports gambling competition in Illinois won’t be as heavy and the state won’t make as much in tax revenue as has been forecast.