Illinois Gaming Board Issues Directive on Prediction Markets
The Illinois Gaming Board has released a formal memorandum addressing inquiries pertaining to prediction markets and event contract trading. This action aligns the state with Pennsylvania and Michigan, both of which have issued cautions to entities considering the introduction of such instruments.
Administrator Marcus Fruchter, to whom the memorandum is attributed, declared: “As a general matter, there is no right under Illinois law to engage in or profit from gambling through contract or otherwise.”
He further clarified: “‘Prediction markets’ constitute gambling activity under Illinois law. Parties that participate in or facilitate such activity in Illinois without IGB licensure or authorization are engaged in illegal gambling.”
This position mirrors recent measures in neighboring jurisdictions. On 8 October, Pennsylvania Gaming Control Board Executive Chair Kevin O’Toole dispatched correspondence to state senators and members of Congress, articulating substantial reservations regarding this form of wagering. Similarly, on 3 October, Michigan Gaming Control Board Executive Director Henry Williams circulated a memorandum admonishing licensees that involvement in prediction markets “will have implications relative to your licensure” within the state.
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Administrator Fruchter elaborated: “It is unlawful to knowingly establish, maintain or operate an Internet site that permits a person to play a game of chance or skill for money or other thing of value, or that permits a person to make a wager upon the result of any sport, game, contest, political nomination, appointment or election via the Internet without an IGB-issued license.”
He added: “If a party engages in or facilitates illegal gambling activity, such conduct may impact that party’s suitability for licensure.”
Regulatory authorities in Arizona and Ohio have likewise registered opposition, with formal communications issued by the Arizona Department of Gaming and the Ohio Casino Control Commission.
