IL SB2207

Amends the Illinois Horse Racing Act of 1975 to authorize the Illinois Racing Board to issue licenses for exchange wagering on horse racing.

Defines exchange wagering as a form of pari-mutuel wagering where two or more persons place identically opposing wagers (backing or laying outcomes) in a given market.

Requires exchange wagering accounts be available only to persons at least 21 years old who are Illinois residents or residents of jurisdictions where such wagering is legal under federal and local law.

Mandates that the Board approve security policies and safeguards including electronic application provisions, age and location verification, account security measures, and fund management requirements before issuing licenses.

Takes effect January 1, 2012, and allows the Board to collect annual licensing fees and require portions of exchange revenues while permitting licensees to collect surcharges on net winnings.