BetMGM has finally received approval to offer its sports betting product to Illinois punters. This will bring the total number of online sportsbooks to 7, much to the delight of sports betting lovers in the state. BetMGM Sportsbook received approval from the Illinois Gaming Board after applying for approval in September 2020.
BetMGM gained access to the Illinois online sports betting market after teaming up with Par-A-Dice Casino in East Peoria. BetMGM snagged this opportunity last spring after FanDuel switched its license affiliation to Fairmount Park Racetrack. Finally, after months of waiting, BetMGM has finally received consent after a lengthy delay to licensure.
BetMGM already had an existing partnership with Boyd Gaming, which operates Par-A-Dice Casino. The partnership has been in existence since 2018. It was this partnership that created a path for both brands to expand their mobile gaming and online gambling presence in 15 states. Illinois already has 6 other online sportsbooks available namely:
- Caesars Sportsbook
- FanDuel Sportsbook
- Barstool Sportsbook
- DraftKings Sportsbook
- BetRivers
- PointsBet
Since the market was legalized, DraftKings and FanDuel have emerged as clear leaders of the revenue table. BetMGM is entering the market at an opportune time, just as the state is preparing to bring back mobile account registration on March 5th. Additionally, BetMGM’s launch will coincide with the start of this year’s March Madness.
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Why Did BetMGM Approval Take So Long?
In 2020, Governor J.B. Pritzker expedited the availability of mobile betting options by suspending a state provision that only allowed the use of online wagering applications to punters that had previously registered in-person. The suspension came in the shape of Executive Order 2020-41 which saw 7 Illinois casinos being granted Master Sports betting licenses. All online sports wagering providers are required by the state’s gaming commission to have this license to operate.
BetMGM applied for a license in September 2020 and by the time Pritzker brought back in-person registration in the state in April 2021, BetMGM and Unibet were still only offering sports betting in an in-person registration capacity. Now with this new approval, BetMGM is sort of re-launching its offerings for mobile sports bettors in the state that had been limited by the in-person registration rule.
So what happens now that BetMGM is taking over the FanDuel license? Things get slightly confusing here. Although BetMGM will rely on the Par-A-Dice casino license to gain market access to Illinois, FanDuel will still maintain control of the retail sportsbook at Par-A-Dice.
The state’s gaming commission only permits a single mobile skin for every entity, which helps to explain why the Par-A-Dice license was suddenly made available. Currently, BetMGM is available in Tennessee, New Jersey, Iowa, West Virginia, Colorado, Michigan, Indiana, Pennsylvania, as well as Virginia.
Will Unibet Launch in Illinois Soon?
This is also why FanDuel will still maintain the operation of the retail sportsbook on-site. If you might recall, Unibet and Barstool had a similar arrangement last year. Unibet secured access to the Illinois market through its partnership with Argosy Casino Alton in September 2021. The brand is already active and thriving in Indiana, Pennsylvania, as well as New Jersey.
Unibet is also awaiting approval for its Sports Management Service Provider license in Illinois. Unibet has a great chance of succeeding in the Prairie State as it is already performing well in New Jersey, as well as Pennsylvania. The brand is still relatively new in Indiana, as it only debuted its services on July 30th, 2021.
Unibet also plans to launch in Iowa this year as it looks to dominate the Midwest. Unibet is especially keen on debuting its sports betting product in Illinois, after its exemplary performance last year. In September last year, Illinois had already surpassed Indiana in terms of revenue generation. Thanks to its September handle, Illinois became the 4th highest revenue generator in the country.
Considering how relatively young the market still is, that was considered an exemplary performance. For this reason, it makes sense that operators like BetMGM and Unibet are doing everything they can to gain market access to the state. Unlike other markets like the Garden State and Pennsylvania, the Illinois market is not as heavily saturated with only 5 operators, which means that there is room for new brands to succeed and cement their positions at the top.
A New Stadium Sportsbook for Sports Betting Fans
In its quest to maintain its position at the top, FanDuel announced recently that it would be launching a brand new sportsbook in Illinois. The retail sportsbook will be situated in the United Center, which is also the home of the Chicago Bulls, as well as the Chicago Blackhawks. As FanDuel awaits official approval, FanDuel will operate a non-betting space at the center.
Illinois sports betting legislation paved the way for stadium sportsbooks in 2019. However, the process of getting them up and running has been slow especially because the Chicago City Council did not give its approval until December 2021. Now that this permission has been granted, the city of Chicago will enforce a 2% tax on revenue generated by retail sportsbooks.
FanDuel’s new sportsbook at United Center will be located next to the stadium’s atrium and will feature high-end viewing and sports betting technology. This sportsbook will expand on FanDuel’s existing partnership with the Chicago Blackhawks and the Bulls. FanDuel also has an existing sportsbook at the old Fairmount Race Track, which is now referred to as the FanDuel Sportsbook and Horse Racing.
When it comes to revenue generation, FanDuel is the second-highest revenue generator in Illinois with a market share of almost 30%. In November last year, FanDuel generated $746 million in wages in November 2021. November is also the month that the state shattered its sportsbook revenue managing to generate an excess of $78 million.
Apart from the sportsbook at United Center, there are several other stadium sportsbooks namely:
- Wintrust Arena (Chicago Sky)
- Wrigley Field (Chicago Cubs)
- Soldier Field (Chicago Bears)
- Guaranteed Rate Field (Chicago White Sox)
Conclusion
It is clear that the Illinois sports betting market will keep growing, as long as sports betting operators like BetMGM and FanDuel keep joining the market.
