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Illinois has proven to be the ultimate social experiment in the world of legal sports betting. Rules have stopped, started, and restarted here ever since the state legalized wagering in late 2019.
If you recall, when Illinois sports betting first launched in March 2020, it required bettors to sign-up at a physical casino, which there are many of in the state. That requirement was removed when a global pandemic broke out that same month. Remote registration was a godsend to top betting apps like DraftKings and FanDuel, which are up market share — which they continue to enjoy five years later.
At the same time, the successes DraftKings and FanDuel enjoyed were spoiled last summer when Illinois changed its tax rate on sports betting. What started as a flat 15-percent tax became a sliding system between 20 and 40 percent. That 40-percent range is reserved for the top earners, which you guessed it, DraftKings and FanDuel exclusively fit into.
The two operators kicked and screamed — and even threatened a tax of their own (cough cough DraftKings) — but ultimately, they took the increased tax on the chun. But here we are a year later, and Illinois has thrown another wrench into their dominance: no credit-card spending. Keep on reading and we’ll tell you about the subtle but big change coming to Illinois’ betting empire.
Credit Cards Are No-Go In Illinois Now
The Illinois Gaming Board announced on April 25 that credit cards will no longer be allowed for sports wagering. The payment method has become bettors’ most popular way to fund their playing — and there lies the problem. The board believes credit cards make addictive gambling more likely.
It makes sense, right? Credit cards have balances that are, most of the time, bigger than their cash balances. This means problem gamblers can rack up debts by playing with money they don’t really have. Plus, the state of Illinois already had credit cards banned for casino gambling so this just “levels the playing field.”
Back when Illinois went live with legal sports betting in 2020, it joined 13 other states in what was then a rapidly growing industry — and none of them had any credit card restrictions. But as the market exploded to 39 states as it is today, a shift in thinking followed. At least six states, including neighbors Iowa and Tennessee, have now outlawed credit card use for sports betting.
“There is a growing body of recent research showing that restrictions on credit usage to fund wagering accounts encourages responsible gambling and mitigates the harms of compulsive gambling,” said board Administrator Marcus Fruchter. “Problem gamblers are particularly at risk and studies have shown an often-problematic willingness for compulsive gamblers to use credit cards to place bets.”
Today, many of the top sports betting apps still accept credit cards — though some card issuers themselves have started blocking transactions tied to gambling platforms. Don’t be surprised if even more states follow Illinois’ lead here. The topic of problem gambling is only going to get bigger as the industry grows, which right now, is faster than anyone expected when the federal ban on sports betting was first lifted in 2018.
Illinois Gambling Goes Cashless
While tightening the screws on credit, Illinois is embracing cash. As part of the same announcement, the Illinois Gaming Board gave the green light for cashless wagering across all 17 of the state’s casinos.
Cashless wagering means players will no longer have to stuff bills in their pockets or stand in line at the cashier’s cage to get paid. Instead, they’ll be able to bet, transfer, and cash out using mobile apps, prepaid cards, or digital wallets. This will allow players to move seamlessly from slots to table games without having to exchange chips and betting tickets. More importantly, this system also has a handle on responsible gaming — such as setting spending limits, locking out access during certain hours, or even self-banning completely.
Going digital is also a safety measure. How many times have we heard stories of patrons who are winning big being robbed blind when they cash out and go to their car? Many casinos have offered personalized security to bettors who hit it big on a given night. This measure makes it harder for thieves to play that game (though far from impossible).
Still, there are some downsides to cashless playing. There are worries that this actually contributes to addictive behavior. Without the physical sensation of handing over cash to a bookie or dealer, players can lose track of how much they’re spending — making it all feel like Monopoly money and leaving them with a dangerous blind spot when gambling. On top of that, cashless systems have at times been vulnerable to technical problems, hacking, and even money laundering, the association said.
Under Illinois’ new rules, casino patrons would be able to create digital wallets to place bets, withdraw credits, fund new wagers, and cash out any leftover balances. But those accounts won’t be a free-for-all. They’ll still be wrapped tightly in state requirements, including the ban on credit card use, mandatory age verification, self-exclusion options, and safeguards against illicit financial activity.
These are all hypotheticals, of course. We won’t know the true effects of going cashless and no credit cards— positive or negative — until at least a year from now. So we suppose the Illinois gambling social experiment will continue…
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