Illinois Regulator Warns Sportsbooks Over Prediction Markets

The Illinois Gaming Board (IGB) has become the latest state regulatory agency to warn licensed sportsbooks against participating in prediction markets.

In a memorandum, the agency stated that any licensee operating or associated with unlicensed event contracts could face suspension of its Illinois sports betting license.

"It is unlawful to knowingly establish, maintain or operate an Internet site 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," the notice stated. 

The IGB further clarified that "prediction markets" fall under gambling activity as defined by Illinois law and that engaging in or facilitating such activity could impact a company's suitability for licensure.

Illinois is now at least the fifth state to issue such a directive this year. In August, the Ohio Casino Control Commission led the way, followed by regulators in Arizona, Nevada, and Michigan. All emphasize that despite their explosive growth, prediction markets resemble unlicensed wagering. 

The Nevada Gaming Control Board noted that wagering occurs regardless of whether contracts are listed on exchanges regulated by the Commodity Futures Trading Commission (CFTC). All of these steps show that regulators are working together to make it clear that the best sports betting sites should avoid prediction markets and other derivatives that aren't part of permitted gaming frameworks.

Pritzker reports $1.4 million in gambling winnings for 2024

The IGB is paying closer attention to gambling and sports betting because they remain significant components of Illinois' economy and politics. According to partial tax records given by his campaign, Gov. JB Pritzker won more than $1.4 million in gambling in 2024. 

Gov. Pritzker and his wife, MK Pritzker, recorded more than $10.3 million in total taxable income, which included money from the casino. This was their best yearly total in a few years, and it was three times what they made in 2023.

Gov. Pritzker, who does not take a state salary, is campaigning for a third term ahead of the March 2026 Democratic primary. The filings show that the couple paid about $1.6 million in federal taxes and $512,000 in state taxes for 2024. 

Campaign representatives attributed the fluctuation in income to variable trust distributions tied to investment performance.

While the governor's returns confirmed substantial gambling winnings, his campaign stated that losses were also recorded but not detailed publicly. The couple's charitable giving doubled to $3.3 million last year, while their family trusts collectively paid over $34 million in federal and state taxes. 

Running mate Christian Mitchell reported earning $583,000 in 2024, as Forbes' estimate of Gov. Pritzker's net worth rose slightly to $3.7 billion. 

Pritzker’s support in September of the introduction of additional betting surcharges in the state raised objections by operators and bettors alike.