In recent months, the state has seen increased revenue, but the NFL’s recent call to ban specific types of bets highlights potential ethical issues with sports wagering. Additionally, research warns of long-term financial harm to vulnerable households, pointing to a darker side of the sports betting surge.
Record Revenues Driven by Accessibility and Popularity
The Illinois sports betting market is now the third-largest in the nation, fueled largely by accessibility and passionate sports fanbases. According to data from the Illinois Gaming Board (IGB), bettors wagered $877.8 million in August, a 29.8% increase from the same period last year, with $57.8 million of revenue from online betting alone. This growth occurred even as Illinois introduced a new progressive tax code, which varies between 20% and 40% based on revenue.
The tax structure has already impacted state revenue positively, generating $13.6 million from sports betting in August. Noah Henderson, a clinical instructor in sport management, observed that Illinoisans’ strong connections to both college and professional sports enhance the market:
“People love sports… all are made available on these apps and [provide] a limitless platform to play.”
Financial Implications for Gamblers and Their Households
Despite the surging popularity and significant tax benefits for the state, sports betting’s financial impact on individual gamblers can be severe. A study by Brigham Young University finance professor Jason Kotter reveals that households participating in sports betting are prone to draining their long-term savings. Kotter’s findings suggest that sports gambling poses unique financial risks compared to other forms of gambling:
“The biggest thing that we’ve seen in our study is that as households begin betting on sports, they actually stop investing in stocks.”
He noted that such behavior is most prevalent among households already struggling financially, which often leads to increased debt.
Sports betting’s appeal is partly rooted in the perception of expertise. Many fans believe their sports knowledge gives them an edge, which Jason Kotter suggests is part of why people justify these bets, saying,
“They often consider themselves experts… in ways that you don’t always feel like an expert when you walk into the casino.”
However, this perceived skill does not negate the broader financial risks posed by the nature of betting, which remains a gamble regardless of personal knowledge.
NFL’s Call for Betting Restrictions
Reflecting rising ethical concerns, the NFL recently requested Illinois to ban 11 types of prop bets deemed
“susceptible to manipulation” and “inherently objectionable.”
These wagers, according to NFL vice president Jonathan Nabavi, could compromise the integrity of the game and invite undue speculation over players’ intentions and conduct. Bets on outcomes easily influenced by a single individual, such as the result of a first pass or whether a player misses a field goal, are among those the NFL wants banned. Additionally, the league opposes bets related to roster moves, officiating assignments, and player injuries, fearing these types could create perceptions of unethical influence.
The Illinois Gaming Board (IGB) has temporarily suspended these wagers, with a final decision scheduled for December. Nabavi emphasized the league’s commitment to maintaining trust between fans and the sport, stating,
“Prohibiting these wagers altogether would complement NFL policies… and protect NFL ‘inside information.’”
The NFL has requested similar bans in other states, underscoring the potential risk posed by prop bets.
