
Illinois has some of the most restrictive sports wagering laws in the country, which means that betting on college basketball games involving Illinois teams is prohibited. While the specific rules have changed over time, the latest bill, which came into effect on July 1, 2024, bans betting on all Illinois-based athletic programs. This means that bettors cannot wager on popular teams like the Fighting Illini or the Redbirds, and they must travel out of state if they want to bet on an Illinois college team. This has resulted in a loss of potential tax revenue for the state, as bettors travel to neighboring states like Indiana and Iowa, which have fewer restrictions, to place their bets.
| Characteristics | Values |
|---|---|
| Reason | Betting on in-state collegiate teams isn't allowed in Illinois |
| Collegiate teams | Fighting Illini, Northwestern Wildcats, DePaul Blue Demons, Southern Illinois Salukis, Loyola Ramblers |
| Collegiate betting | Allowed in Massachusetts, Mississippi, Montana, Indiana, Iowa |
| Collegiate betting | Not allowed in Oregon, Connecticut, Delaware |
| Illinois | One of the highest tax rates in the country |
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What You'll Learn
- Illinois state law prohibits betting on in-state collegiate teams
- Illinois residents can travel out of state to legally bet on Illinois college teams
- Illinois college sports betting is banned in-state but not nationally
- Illinois sports betting tax rates are among the highest in the country
- Illinois sports betting laws are more restrictive than in neighboring states

Illinois state law prohibits betting on in-state collegiate teams
When sports gambling became legal in Illinois in 2019, one of the provisions of the law was that betting on in-state collegiate teams was not allowed. The law states, "a licensee under this Act may not accept a wager for a sports event involving an Illinois collegiate team." This means that bettors cannot wager on specific Illinois college or university teams, regardless of the sport.
The restriction on betting on in-state collegiate teams in Illinois is not a complete ban on college sports wagering. Bets can still be placed on college sports events that do not involve Illinois teams. For example, licensed Illinois mobile sportsbooks can take college basketball bets on a game between Indiana University and the University of Iowa. However, any games involving Illinois teams, such as the Fighting Illini or Wildcats, are off-limits.
The law also prohibits certain types of wagers, such as prop bets on individual player performances. Only "classic" wagers, such as point spreads, moneylines, or point total over/unders, are accepted. These wagers must also be placed in person at a sportsbook rather than through an app.
The restrictions on collegiate betting in Illinois have evolved over time, with the state initially allowing retail bets before moving back to a complete ban on betting on Illinois teams as of July 2024. This ban includes all Illinois-based athletic programs, regardless of the division or level of competition.
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Illinois residents can travel out of state to legally bet on Illinois college teams
Illinois residents cannot bet on Illinois college teams within the state. This restriction applies to both online and offline betting. However, Illinois residents can travel out of state to legally bet on Illinois college teams. For example, they can cross the Indiana or Iowa borders to place such bets. This is because the restriction on betting on in-state college teams only applies within the state of Illinois.
Illinois is not the only state with such a ban. Other states where similar restrictions exist include Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, South Dakota, Virginia, and Washington.
The reason for the restriction in Illinois is that when sports gambling became legal in the state in 2019, one of the provisions of the law was that betting on in-state collegiate teams was not allowed. This was likely due to concerns about match-fixing and the potential negative impact on student athletes.
While this restriction may have been well-intentioned, it has led to bettors in Illinois seeking alternatives, such as travelling out of state or using illegal channels to place their bets. This could result in a loss of tax revenue for the state, as well as a negative impact on the developing regulated market in Illinois.
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Illinois college sports betting is banned in-state but not nationally
Illinois has some of the most restrictive sports wagering laws in the country. While sports gambling has been legal in the state since 2019, one of the provisions of the law was that betting on in-state collegiate teams wasn't allowed. This means that bettors in Illinois cannot wager on Illinois college teams like the Fighting Illini, Northwestern Wildcats, DePaul Blue Demons, Southern Illinois Salukis, or Loyola Ramblers, among others. This ban includes all Illinois college and university teams, even those that compete in the NAIA (National Association of Intercollegiate Athletics) and the lower levels of the NCAA (National College Athletic Association).
However, this restriction only applies to bets placed within Illinois. Illinois residents can still legally bet on their state's college teams if they cross the border to Indiana or Iowa. This unique situation has led to a loss of potential tax revenue for Illinois, as bettors travel out of state or use illegal channels to place their wagers.
The laws in neighboring states like Indiana and Iowa are much more permissive. In Iowa, there are no restrictions on specific teams that legal sportsbooks can take action on, while Indiana treats college sports the same as any other sport. Oregon, on the other hand, has barred all wagering on college sports.
While Illinois college sports betting is banned in-state, it is not a complete ban on college sports wagering. Bettors in Illinois can still wager on out-of-state college teams, such as Alabama football or UConn basketball. Additionally, Illinois residents can bet on sporting events inside the state, as long as they do not involve an in-state collegiate team. For example, licensed Illinois mobile sportsbooks can take college basketball bets on a game between Indiana University and the University of Iowa within a tournament held in Chicago.
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Illinois sports betting tax rates are among the highest in the country
Illinois has recently introduced a new sports betting tax structure, which has resulted in tax rates that are among the highest in the country. The state's lawmakers passed a $55.2 billion budget for the next fiscal year, which includes a range of tax increases, including a significant hike in sports betting taxes.
Previously, Illinois had a sports betting tax of 15%. However, in July 2024, Governor JB Pritzker signed HB 4951, which introduced substantial changes to the sports wagering tax, effective from July 1, 2024. As a result, the state implemented a tiered tax system, with rates ranging from 20% to 40%. This new structure is unique among states and is significantly higher than the previous rate.
The current Illinois sports betting tax charges sportsbooks 25 cents per wager for the first 20 million bets they take and 50 cents per wager after that. This per-wager charge is unprecedented and has been criticised by the Sports Betting Alliance, which represents major sportsbooks, as "discriminatory" and "constitutionally suspect". They argue that this tax structure could change how sportsbooks operate, potentially leading to less favourable odds, fewer promotional bets, or the implementation of minimum bet thresholds.
In addition to the per-wager charges, Illinois also has reporting obligations that are rarely seen in other states. Licensees must submit an annual audit of their financial transactions and a quarterly compliance report on their procedures. These requirements add to the financial burden of sportsbooks operating in Illinois.
While other states have also increased sports betting taxes, Illinois stands out with its per-wager charges. This unique structure has drawn attention, and it remains to be seen whether other states will follow suit with similar tax models.
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Illinois sports betting laws are more restrictive than in neighboring states
Illinois sports betting laws are more restrictive than in some neighboring states, such as Indiana, Iowa, and Michigan. While Illinois allows sports betting in selected environments, including horse racing and casinos based on riverside boats, there are certain restrictions that neighboring states do not have.
One notable restriction in Illinois is the ban on betting on games involving in-state collegiate teams. This restriction was implemented to prevent potential integrity threats and negative interactions between athletes and bettors. However, this restriction could backfire as bettors may turn to illegal bookies or offshore websites, increasing the risk of match-fixing attempts.
In contrast, neighboring states like Indiana and Iowa have more lenient laws regarding betting on college sports. For example, Indiana treats college sports betting the same as any other sport, while Iowa only restricts prop bets on individual athletes, regardless of the team they represent. These differences in state laws can impact the revenue generated from sports betting, with Illinois potentially missing out on income due to its local college betting ban.
Additionally, Illinois requires in-person registration for online sports betting accounts, which was previously required in Wisconsin but has since been lifted. Wisconsin's sports betting model is considered restrictive compared to its neighboring states, including Illinois. While Wisconsin offers sports betting services, it is limited to tribal lands, and any expansion beyond these lands would require constitutional amendments. This restrictiveness could lead to Wisconsin residents turning to illegal and offshore betting sites, potentially exposing them to scams and data leaks.
Overall, Illinois has a relatively liberal gambling scene compared to some neighboring states, and efforts have been made to provide bettors with the desired services. However, certain restrictions, such as the ban on betting on in-state collegiate teams, make Illinois sports betting laws more limiting than those in some surrounding states.
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Frequently asked questions
When sports gambling became legal in Illinois in 2019, one of the provisions of the law was that betting on in-state collegiate teams wasn't allowed. This means no wagers on teams like the Fighting Illini, Wildcats, DePaul Blue Demons, Southern Illinois Salukis, Loyola Ramblers, etc.
Yes, Illinois residents can place legal bets on Illinois college teams in sportsbooks in neighbouring states like Indiana and Iowa. In Illinois, you can only place bets on Illinois college basketball games in person at physical sportsbook locations, not on apps.
Only "classic" wagers are accepted, such as point spreads, the moneyline, or point total over/unders. Prop bets on individual player performances are prohibited.
The law was intended to prevent athletes from being vulnerable to match-fixing attempts. However, it has resulted in bettors staying on the unregulated market or travelling out of state, potentially causing the regulated market in Illinois to lose out on millions of dollars in tax revenue.











































