Ill. Allows Online Horse Racing Bets, Expects $2M

CARYN ROUSSEAU

CHICAGO (AP) — The Illinois Racing Board on Tuesday issued the state's first licenses to companies to take horse racing bets online, a move officials say could bring in more than $1.7 million in additional tax revenue for the state.

The board voted unanimously to license three California companies to take electronic bets from Illinois residents through computers, phones, interactive televisions and other mobile devices. State officials said the law will enable them to collect taxes on about $100 million in unauthorized online horse wagers each year in Illinois.

At least one company, Los Angeles-based TVG Network, said it would be operating in Illinois later Tuesday.

"We think it's a great step for horsemen and the tracks," said Frank Kirby, president of the Illinois Thoroughbred Horsemen's Association.

Racing Board executive director Marc Laino projected that such betting could become a $100 million to $150 million industry in Illinois in 2010, generating between $1.7 million and $2.25 million in new taxes.

The added revenue will go into a horse racing fund, which Laino said pays operating costs for the state Racing Board, which regulates horse racing in the state. Laino said fund is projected to operate at a deficit next year, including any revenue from the new online wagering tax.