* Sun-Times…

The daily fantasy sports debate is back in Illinois.

Nearly a decade after Illinois officials tried — and failed — to clamp down on the popular sports lineup-building contests that some critics decry as illegal gambling, state regulators set their sights last month on one of the most popular apps operating in a long-standing legal gray area.

The Illinois Gaming Board sent a cease-and-desist letter to PrizePicks just days ahead of the Super Bowl, declaring that some of the Atlanta-based company’s daily fantasy contests “constitute illegal gambling in violation of Illinois law” and could draw fines. Illinois Attorney General Kwame Raoul also urged them “to cease unlicensed sports betting.”

The scathing letter was in a batch of legal actions sent out to 11 gaming companies, a list that lumped in PrizePicks and other daily fantasy sites with Bovada, an offshore sportsbook that has taken bets in flagrant violation of state and federal law for years, officials say.

PrizePicks says it no longer offers the contests that had regulators blowing the whistle in Illinois.

* Meanwhile, here’s the testimony from the Gaming Board in a House committee earlier this week. House Bill 3080 legalizes internet gambling and the board opposes the bill…

Good afternoon, Chair Didech, Vice-Chair DeLuca, Minority Spokesperson Stephens and Members of the House Gaming Committee. My name is Joe Miller, I am Director of Policy at the Illinois Gaming Board (IGB). Thank you for allowing the IGB to share its perspective on HB 3080. I will be brief.

The IGB is opposed to HB 3080 for 3 reasons:

First, IGB implementation of iGaming or any significant new gaming expansion is not possible at this time without the IGB canceling, pausing, or delaying execution of many key agency mandates and initiatives. Some of those key priorities include: (1) procurement and deployment of a comprehensive licensing, asset, and case management system for casino, video gaming and sports wagering to replace over 27 legacy IT applications; (2) ongoing modernization of agency infrastructure, operations, staffing, administrative rules, and casino internal control standards; (3) implementation of TITO technology in video gaming, cashless wagering for casinos and video gaming, incorporation of video gaming into the existing Self-Exclusion Program for Problem Gamblers, and many other critical initiatives to enhance efficiency and safeguard the integrity and safety of Illinois gaming.

Second, HB 3080 does not directly address illegal online gambling, also known as sweepstakes casinos. Nor does the bill address the problem of unregulated retail sweepstakes machines. Like the predatory sweepstakes machines that copy licensed, legal slot machines and video gaming terminals, illegal online sweepstakes gambling sites deceptively mimic legal forms of gambling and casino games.

Leader Rita introduced HB 2879, which amends the Illinois Criminal Code to explicitly prohibit retail sweepstakes machines and online sweepstakes gambling. The IGB strongly supports HB 2879. Simply legalizing internet gaming in Illinois through HB 3080 without passage of HB 2879 will not eliminate deceptive and fraudulent sweepstakes operators from the Illinois gambling landscape.

Third, the IGB has concerns with the proposed regulatory structures in HB 3080. They are inconsistent with established IGB regulatory protocols and standards and establish an enforcement regime that favors online gaming companies by limiting the IGB’s ability to effectively regulate internet gaming and protect Illinois patrons. The legislation uses extremely specific language to erect regulations that have been shown to be problematic in other jurisdictions. Existing bill language could also curtail the IGB’s ability to adjust regulations in the future based on empirical research from behavioral health scientists and respond to other developments.

While our present opposition to iGaming during this legislative session will not change, the IGB is nonetheless willing to work with Leader Gonzalez and bill proponents to explore potential solutions to our structural and regulatory concerns about HB 3080. Thank you for your time today. I am happy to answer any questions.

* And in other news, Boyd Gaming owns Pala Interactive LLC, an online gambling company. The company is also a strong proponent of HB3080. From MarketBeat…

Illinois Municipal Retirement Fund increased its position in Boyd Gaming Co. by 46.6% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 40,117 shares of the company’s stock after buying an additional 12,752 shares during the quarter. Illinois Municipal Retirement Fund’s holdings in Boyd Gaming were worth $2,910,000 as of its most recent filing with the Securities and Exchange Commission.